Why IBM Bought Red Hat?

As we all know that after buying Red Hat, IBM has strengthened its position in the industry in two sectors open-source software and the cloud. IBM bought Red hat for $34 Billion, which is one of the biggest software acquisition ever. But the big question is why IBM is spending such a huge amount over gaining cloud power. May be it’s about investing in open source, but cloud and open source are closely connected, so it’s still kind of mystery. Let’s find out what could be the real reasons behind IBM adding Red Hat in its list of subsidiaries.
When we talk about cloud the first name that comes to our minds is Microsoft Azure, as it is one of the most prominent cloud computing service. Then there are other service providers like Linux that offer virtual machines (VM) for sharing the workload of Azure. Most of these VMs are incidentally Red hat Enterprise Linux (RHEL). IBM has been supporting open-source software and Linux for decades now. Whenever we talk about talk, we can’t forget the contribution of IBM and IBM’s CEO Sam Palmisano said himself that ‘you can’t do what they’re doing in cloud’. IBM is a strong cloud believer and over the time they’ve proved this fact. IBM has IBM Bluemix, which is a Platform-as-a-Service (PaaS) and an Infrastructure-as-a-Service (IaaS) which is built on open source software. Now, you might ask that if IBM is already having such innovative technologies, then what was the need to acquire Red Hat. The answer lies in the technology of hybrid cloud, as IBM didn’t have proficiency in building a sterling hybrid cloud.
After confirming their collaboration with Red Hat, IBM’s CEO Ginni Rometty said that their customers were asking them for only one thing which is to move their data and corporate details across numerous cloud environments without any lock-in. Now this can be easily done by the services of Red Hat under the supervision of IBM. Now the current customers of IBM can relish great cloud offering with this acquisition.
This acquisition is a very smart move and initially it doesn’t mean to compete directly with the already settled 800-pound public cloud provider AWS (Amazon Web Services). For now, IBM will remain a public cloud provider but behind AWS and Azure. May be in the near future, we can see IBM becoming a top dog hybrid cloud player but not for now.
IBM knows how difficult it is to create a cloud platform that is capable of working from 50,000 to half a million servers. With this, Kubernetes (open source software by Red Hat) can help. Red hat offers two benefits to IBM, one is it knows Linux and other is that at the backend it provides amazing Kubernetes distribution in OpenShift. Red Hat has the experts who know how to make Kubernetes a better fit for hybrid clouds.
So, I hope now you know why IBM has taken such a huge step and what is the business plan behind it. If the IBM programmers and Red Hat team would work in congruence on using the Kubernetes technology, then this deal will be the best thing ever happened to IBM.
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