Red Hat was up for sale for quite some time, according to some sources. Specifically, Red Hat is expected to bring three things to IBM: the world’s largest portfolio of open source technology, their innovative hybrid cloud platform, and a vast open source developer community. “So many good things have come from open source projects,” he notes, “and Red Hat has been a long-time favorite for many Linux users.”Meanwhile, Andreadis is concerned about the hefty price IBM pays for Red Hat. “The other side of this is that this is a hefty valuation of $34 Billion over the before announcement valuation of Red Hat at $20 Billion.”And there are doubts when it comes to the impact Red Hat will have on Big Blue’s financials. Table 1Company Total Revenue Qtrly Revenue Growth Operating Margin Employees IBM $87.57B -2.10% 15.4 366,600 Red Hat $3.16B 13.70 15.73 11,870Source: Finance.yahoo.com 10/29/2018But things may change if the three things Red Hat bring to IBM help the technology giant compete effectively against Amazon, Google, and other competitors, over the long-term.

Source: Forbes November 03, 2018 13:52 UTC