IBM’s legacy assets and capabilities are formidable, but the firm was not well positioned for IT modernization and struggled with digital operating models. The Red Hat acquisition is significant as it repositions IBM as a vital, must-have partner for enterprise customers in IT modernization and evolving digital operating models. Red Hat has a fully formed new-age digital operating model that it developed for flexible support of enterprise Linux IT. The Red Hat acquisition is, by far, IBM’s biggest deal ever and the third-biggest deal in the history of the US technology sector. This Red Hat acquisition is a move to put IBM at the center of the IT modernization wave.

Source: Forbes October 30, 2018 13:07 UTC