Skip to main content

IBM Invests Billions To Purchase Popular Red Hat Linux

By November 6, 2018June 2nd, 2022Technology News

IBM has recently announced what is to be the largest open source acquisition in history.  They’re buying Red Hat for a staggering $34 billion dollars.  This, as the saying goes, changes everything.

IBM has lagged behind its competitors for years in the area of cloud computing.  When the ink dries on this deal, they’ll move from a virtual non-entity in the market to the world’s #1 hybrid cloud provider.

If you’re a Red Hat supporter, don’t worry that the company is going away.  The company is to retain its independence.  Rather than being rolled into the corporate structure of IBM, it will be run as a distinct entity and will continue to be led by Red Hat’s current CEO, Jim Whitehurst.  Red Hat’s headquarters, facilities and their corporate culture will all remain intact.

Whitehurst himself had this to say about the announcement:

“…Importantly, Red Hat is still Red Hat.  When the transaction closes, as I noted above, we will be a distinct unit within IBM, and I will report directly to IBM CEO Ginni Rometty.  Our unwavering commitment to open source innovation remains unchanged.

The independence IBM has committed to will allow Red Hat to continue building the broad ecosystem that enables customer choice and has been integral to open source’s success in the enterprise.”

At this point, most of the hurdles standing in the way of the acquisition have been cleared.  All that remains is gaining Red Hat shareholder and regulatory approval, both of which are deemed likely.  Assuming there are no unexpected wrinkles in the plan, the deal is expected to be finalized sometime during the second half of 2019.

IBM has long supported Linux and other open source initiatives, and this deal is unlikely to change that. That is one of the reasons the proposed deal is unlikely to meet much resistance from either Red Hat’s shareholders or governmental regulatory agencies.

Jason Manteiga

Jason J. Manteiga, Vice President of Olmec Systems, has been part of the company for over the past 20 years. He believes that having a great work environment and supportive team, is the ultimate key to success. Since being in the IT realm for over 25 years, Jason, along with Olmec Systems, has been on the Inc. 5000 “List of America’s Fastest Growing Private Companies” and Channel Futures MSP 501 “Top Managed Service Providers in North America,” along with other awards and nominations. Jason earned his Bachelor Degree in Information Systems from the New Jersey Institute of Technology. He also holds certifications in Microsoft MCSE, VMWare VCP, and Cisco CCNA. In his spare time, Jason is a contributor for The Center for Social & Legal Research (Privacy Exchange) and a member of the Morris County Chamber of Commerce. His hobbies include cycling and kayaking. He currently lives in New Jersey with his wife, two daughters and son.