{"id":15844,"date":"2018-10-29T16:39:52","date_gmt":"2018-10-29T16:39:52","guid":{"rendered":"https:\/\/one.sightlinemg.com\/federaltimes\/uncategorized\/2018\/10\/29\/ibm-acquires-open-source-cloud-company-in-34b-deal\/"},"modified":"2026-08-08T04:42:02","modified_gmt":"2026-08-08T04:42:02","slug":"ibm-acquires-open-source-cloud-company-in-34b-deal","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/federaltimes\/govcon\/2018\/10\/29\/ibm-acquires-open-source-cloud-company-in-34b-deal\/","title":{"rendered":"$34B IBM-Red Hat deal could boost fed open source"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">A recent deal between IBM and open-source cloud company Red Hat will help a public-sector cloud marketplace already trending toward a more open-source design, according to Arvind Krishna, senior vice president of IBM Hybrid Cloud.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe U.S. public sector has been a strong supporter of open source now for many, many years. I think what we do here together only gives them more,&#8221; Krishna said. \u201cWe fully endorse and want our federal government here in this country to drive more and more adoption of open source, because it\u2019s appropriate for the benefits it can bring.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Krishna added that budgeting concerns on top of an imperative to modernize make open-source solutions particularly appealing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe public sector and especially the federal and state governments can all benefit from using even more technology with an open source.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The two companies announced Oct. 28 that they had reached a deal for IBM to acquire Red Hat at an estimated value of $34 billion.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe acquisition of Red Hat is a game-changer. It changes everything about the <a href=\"https:\/\/www.federaltimes.com\/govcon\/2018\/10\/10\/ibm-calls-out-jedi-turning-its-back-on-cloud-priorities\/\" target=\"_blank\">cloud market<\/a>,\u201d said Ginni Rometty, IBM chairman, president and chief executive officer. \u201cIBM will become the world\u2019s No. 1 hybrid cloud provider, offering companies the only open-cloud solution that will unlock the full value of the cloud for their businesses.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to Paul Cormier, president of products and technologies at Red Hat, the acquisition will enable Red Hat to expand and take on projects that it was previously too small to support.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe\u2019re still a relatively small company and, you know, our customers are really seeing <a href=\"https:\/\/www.federaltimes.com\/it-networks\/2016\/09\/22\/hybrid-approach-to-federal-open-source\/\" target=_blank>open, hybrid cloud as the only way to bring public cloud into, as part of their IT infrastructure<\/a>. And the demand for us is something, at our size, that we can\u2019t recognize the potential of that demand,\u201d Cormier said in a press briefing on the acquisition.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIBM here helps us now bring that strategy to 170 countries around the world. It really accelerates the vision that we\u2019ve had and the product portfolio that we\u2019ve built out.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But the acquisition will not change the projects that Red Hat is working on or the focus of the company, according to both Cromier and Krishna.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe\u2019re going to run Red Hat as a separate entity within IBM. There\u2019s a number of reasons for that: culture is a reason, product set is a reason, but one of the other reasons is business, as well. We need to and will remain Switzerland in terms of how we interact with our partners,\u201d said Cormier.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That neutral designation is particularly important for Red Hat\u2019s partnerships with other major public cloud providers, such as Amazon Web Services and Microsoft Azure.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cI don\u2019t think it will affect those deals; in fact, I\u2019ve already heard from many of my connections at the public cloud partners with all good comments,\u201d said Cormier.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the news release, IBM is committed to using Red Hat technology to continue being a multi-cloud provider and supporting open-source technology on all platforms.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This means that Red Hat will continue to pursue the same open-source programs and contributions to the open-source community, including deals with other cloud-providing companies, while taking advantage of the resources provided by IBM. In turn, IBM continues a longstanding partnership with Red Hat that has served as the basis of its $19 billion hybrid cloud business.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to IBM, the acquisition of Red Hat will &#8220;change everything about the cloud market.&#8221;<\/p>\n","protected":false},"author":7,"featured_media":37370,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":12,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[106,12,31,110,33],"tags":[],"coauthors":[2853],"class_list":["post-15844","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-brief","category-govcon","category-home","category-it-cloud-report","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"NJ6WXBCK7JCPZOSTPHMUW2GXLM","arc_canonical_url":"\/govcon\/2018\/10\/29\/ibm-acquires-open-source-cloud-company-in-34b-deal\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>$34B IBM-Red Hat deal could boost fed open source - Federal Times<\/title>\n<meta name=\"description\" content=\"According to IBM, the acquisition of Red Hat will &quot;change everything about the cloud market.&quot;\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"$34B IBM-Red Hat deal could boost fed open source\" \/>\n<meta property=\"og:description\" content=\"According to IBM, the acquisition of Red Hat will &quot;change everything about the cloud market.&quot;\" \/>\n<meta property=\"og:url\" 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