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IBM buys Red Hat for $ 34 billion! but why?

No doubt you heard about a deal by Tech Industry, IBM (International Business Machines), one of the oldest operating technology companies, to acquire the giant Linux and open source Red Hat for $ 34 billion. If the acquisition is to be completed by half of 2019. It is the largest purchase of software in history, so far the largest purchase of software was Microsoft's acquisition of LinkedIn for $ 26.2 billion in 2016.


"The acquisition of Red Hat will change the game," IBM chief Jenny Romanti said. And that it will change everything about the cloud computing market. "When buying Red Hat, IBM will start providing technology to its biggest competitors, including Amazon, Microsoft and Google, and IBM will continue to be a partner even after the acquisition and will work on Expansion.
IBM expects to emerge as the leading global cloud provider and will treat Red Hat as a completely different unit within its Hybrid Cloud group. You also expect to use Red Hat's open source to take advantage of them. If you do not have knowledge of cloud computing, I'll just show you that Cloud is hinting to software and services that run on the Internet instead of your computer like Google Drive, Flickr, Netflix, Microsoft Office 365, Yahoo Mail, Dropbox, all these cloud services.
The reason behind the acquisition
Spending billions to get an open source software company may seem strange. In the 1990s, when Linux was a powerful third-party solution for engineers, programmers, and system administrators, IBM publicly announced its support for Linux. IBM predicted that the reason for this is that Linux will run the vast majority of servers that will occupy the Internet and corporate background. Therefore, it has created the IBM Linux Technology Center to allow development in Linux without expensive patent claims, although Red Hat may not be nearly as old as IBM, but it is still a company that makes money.


Open source in the past has been an impractical movement in the software industry, but now it is the core part of how large companies like Google and Facebook work to Walmart and others. Engagement law allows competitors to work together to solve common problems. Microsoft has released several open source projects and has just closed a $ 7.5 billion acquisition of GitHub.
Meanwhile, IBM is trying to transform itself into a cloud computing company. RightScale Cloud Management conducted a survey earlier this year, and IBM has developed the fourth most widely used cloud service, behind Amazon, Microsoft and Google, and found fewer growth statistics.
Although Red Hat is not a wide range of cloud services, it is a key player in building cloud services. While Red Hat is renowned for its operating system, it offers a range of other products that make it easy for companies to create cloud-like platforms in their data centers or manage applications that run on many different cloud computing services.
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