IBM is acquiring Red Hat for $34 billion

IBM is acquiring Red Hat for $34 billion 1

IBM and RedHat announced today that IBM will Acquire Red Hat, significantly changing the cloud landscape And arguably becoming world’s #1 Hybrid Cloud Provider.

The most significant tech acquisition of 2018 promises to accelerates IBM’s high-value business model, making it a top player in the emerging $1 Trillion Hybrid Cloud business.

Aspersions and doubts about the Open Source nature of Red Hat

While the business community has widely appreciated the development, the tech community has been widely skeptical of the developments, with the reaction rangins from anger, anxiousness, to funny.

IBM is acquiring Red Hat for $34 billion 2
The “Hat Gauntlet” and the employee who can’t get away!

The /technology subreddit expressed their doubts with some commenting about IBM’s alleged track record of subverting innovation culture.

IBM is acquiring Red Hat for $34 billion 3
Worries expresses abotu IBM’s ability to delivery innovation

It remains to be seen if IBM will adopt the approach it took with several past acquisitions like Lotus, Tivoli, Rational, etc., where the acquistions were pivoted to focus on enterprise customers.

What happens to CentOS?

While IBM has stated that Red Hat will work as an independent entity within it’s hybrid cloud division (for now), the tech community has cast doubts on the Enterprise Class, free and open source fork, CentOS.

Parallels were draws with Oracle’s acquisition of Open Solaris, and if IBM will clamp down on the Red Hat team’s contribution to the CentOS project effectively signalling it’s end.

And, let’s not forget Ansible

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