The international technology company, IBM has purchased “Red Hat”, an American cloud software company, in a landmark tech deal valued at $34 billion, making it the second-largest deal in technology history.
The company’s CEO, Ginni Rommety said
“This is about the hybrid cloud — it is the future, it is the destination of the cloud. This market is a trillion dollars, it’s emerging and it’s very interesting to me that since our announcement now you hear everybody else talking about it, too.”
According to a Bloomberg reporter, Olivia Carville
“Red Hat will improve IBM’s profit margins, and get the company further into an emerging part of the business known as hybrid cloud. But the deal may not make IBM a dominant player in the public cloud”.
Bloomberg Intelligence analyst Anurag Rana stressed that as a result of this, IBM would be working closely to its main rivals, Amazon, Microsoft, Google, and Alibaba.
This shows an advanced way of thinking about the competitive landscape, and if IBM remains true to this philosophy, it should show an improvement in growth down the road.
Rommety, however, expressed happiness towards IBM’s new hybrid cloud strategy stressing that the company views Amazon, Microsoft, and Google as partners rather than rivals.
She added that the platform we are talking about has to run on other people’s clouds too. This is not a winner takes all market.