IBM announced that it will acquire open-source Software company Red Hat for $34 billion. This deal will help IBM to expand its reach as an enterprise cloud computing provider.

Red Hat describes itself as a leading provider of open source software and services for enterprise customers, focusing on cloud computing and Linux servers. In 2012, it became the first company providing open-source software to surpass $1 billion in revenue. It will now become a part of IBM’s Hybrid Cloud division.

“The acquisition of Red Hat is a game-changer. It changes everything about the cloud market,” said Ginni Rometty, IBM Chairman, President and Chief Executive Officer, in a statement announcing the acquisition.

IBM buying Red Hat means that it will start providing technology to its biggest competitors, including Amazon, Microsoft and Google. Red Hat partners with all of them, and IBM said it will continue the partnerships after the acquisition and work to expand on them.

For more information, you can refer their official news from the following URL:

https://newsroom.ibm.com/2018-10-28-IBM-To-Acquire-Red-Hat-Completely-Changing-The-Cloud-Landscape-And-Becoming-Worlds-1-Hybrid-Cloud-Provider