The hottest IBM acquisition of red hat has complet

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IBM's acquisition of red hat: completely changing the pattern of cloud computing and becoming the world's number one cloud supplier

IBM and red hat, the world's leading open source cloud software supplier, recently announced that the two companies have reached a final agreement, and IBM will purchase all issued and outstanding common shares of red hat with a total value of about $34billion at $190.00 per share in cash

core points:

the largest acquisition in the field of science and technology in 2018 will fully tap the value of the cloud for enterprises

IBM and red hat work together to provide enterprises with open cloud solutions to achieve unprecedented security and cross cloud portability

this transaction accelerates IBM's high-value business model, making IBM in a $1 trillion emerging market, Become the leading hybrid cloud supplier

this acquisition will enable IBM to achieve free cash flow and gross profit growth within 12 months, thereby promoting the steady growth of its revenue and dividends

ibm will maintain red hat's open source innovation advantage, expand its rich technology portfolio, and inject vitality into its huge developer community

red hat will operate as an independent department in IBM's hybrid cloud team

ibm chairman Luo Ruilan, President and CEO (right),

Jim Whitehurst, President and CEO of red hat company (left)

Ginni rometty, chairman, President and CEO of IBM, said: the acquisition of red hat is a disruptive measure, which will change the entire cloud market. IBM will become the world's number one hybrid cloud provider, providing customers with unique open cloud solutions to help them fully tap the value of the cloud and promote enterprise business growth

at present, most companies have only completed 20% of the journey to the cloud, that is, renting computing power to cut costs. The remaining 80% is about the enterprise to release its real business value and promote business growth. This is the next chapter of cloud. Enterprises need to migrate applications to hybrid cloud, extract more data, and optimize various business links such as supply chain and sales. She added

open source is the default choice of modern IT solutions. I am very proud of the role red hat plays in achieving this goal in the enterprise. Jim Whitehurst, President and CEO of red hat, said that cooperating with IBM will help us expand scale, expand resources and improve capabilities, so as to accelerate the fundamental impact of open source on digital transformation and bring red hat to a wider audience, While preserving our unique culture and unwavering commitment to open source innovation

this acquisition brings together two first-class hybrid cloud providers to help enterprises safely migrate all business applications to the cloud. Today, some companies have adopted the multi cloud model, but research shows that due to the current proprietary characteristics of the cloud market, 80% of the business workload has not yet turned to the cloud. The migration, security and consistent cloud management of data and applications in multi cloud environments have been affected

ibm and red hat will work to solve these problems and accelerate the adoption of hybrid cloud models. The two companies will work together to help enterprise users create cloud native business applications faster, improve the portability and security of data and applications across multiple public and private cloud environments, and achieve consistent cloud management. In the slow response of process control, they will give full play to the leadership advantages of both sides in core technology fields, such as Linux, containers, kubernetes, multi cloud management, cloud computing management and automation

the partnership between IBM and red hat has lasted for 20 years. As an early supporter of Linux, IBM cooperated with red hat to help develop and develop Enterprise Linux, and recently provided customers with enterprise class kubernetes and hybrid cloud solutions. These innovations have become core technologies in IBM's $19billion hybrid cloud business. IBM and red hat have contributed more to the open source community than any other organization

Luo Ruilan said: today's 1. Select the uncut rectangular sample: the uncut rectangular sample is a comprehensive release of the beginning and expansion of tear, marking the sustainable development of our long-term cooperative relationship. The hybrid cloud cooperation we jointly released in May this year is an important prerequisite for our acquisition

through this acquisition, IBM will continue to be committed to red hat's open management, open source code contribution, participation in the open source community and development model, and promote the development and growth of its extensive developer ecosystem. In addition, through patent promise, GPL cooperation commitment, open invention network and lot network, IBM and red hat will continue to uphold the free characteristics of open source

in addition to IBM cloud computing, IBM and red hat will continue to establish and strengthen red hat's partnership, including cooperation with AWS, Microsoft azure, Google cloud, Alibaba cloud and other major cloud providers. At the same time, red hat will also benefit from IBM's hybrid cloud and enterprise it scale, and expand the open source technology portfolio to the world

Arvind Krishna, senior vice president of IBM hybrid cloud, said: IBM is committed to becoming a real multi cloud provider, and we will give priority to the use of red hat technology in the multi cloud model. No matter where the open source technology is running, IBM will provide support to promote its substantial expansion in the global business environment

after the acquisition, red hat will join the IBM hybrid cloud team as an independent department to maintain the independence and neutrality of red hat's open source tradition and commitment, its current product portfolio and market strategy, and its unique development culture. Red hat will continue to be led by Jim Whitehurst and red hat's current management team. Jim Whitehurst will also join IBM's senior management team and report to Luo Ruilan. IBM will retain red hat's headquarters, facilities, brand and business practices

Paul Cormier, President of products and technology of red hat company, said: IBM is committed to retaining the successful experience of red hat company, that is, it will always put customers and open source community first. This is not only a huge opportunity for red hat company, but also for the increasingly large open source community. Our mission has never changed since the day we decided to introduce open source into the enterprise. Now, one of the largest enterprise technology companies in the world has agreed to cooperate with us to expand and accelerate our efforts and bring open source innovation to more enterprises

financial details

the acquisition of red hat consolidated IBM's high-value model. The transaction will enable IBM to achieve revenue and gross profit growth and free cash flow within 12 months. It will also bring steady and growing dividends

ibm will continue to adopt strict financial policies and strive to maintain a strong investment grade credit rating. IBM will suspend its share repurchase program in 2020 and 2021

when signing the contract, IBM has sufficient cash, credit and bridge funds to ensure transaction financing. IBM intends to complete the transaction in a combination of cash and loans

this acquisition has been approved by the board of directors of IBM and red hat. The transaction also needs to be approved by the shareholders and regulatory authorities of red hat company and meet other practices. The compliance of products under the new national standard is the safety compliance condition under a certain use condition. The transaction is expected to be completed in the second half of 2019

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