IBM picks up Red Hat in US$34b deal

IBM and Red Hat have reached a definitive agreement under which IBM will buy all of the issued and outstanding common shares of Red Hat for US$190.00 per share in cash, representing a total enterprise value of approximately US $34 billion.

“The acquisition of Red Hat is a game-changer. It changes everything about the cloud market,” said Ginni Rometty, IBM Chairman, President and CEO. “IBM will become the world’s no. 1 hybrid cloud provider, offering companies the only open cloud solution that will unlock the full value of the cloud for their businesses.

“Most companies today are only 20 percent along their cloud journey, renting compute power to cut costs,” she said. “The next 80 percent is about unlocking real business value and driving growth. This is the next chapter of the cloud. It requires shifting business applications to hybrid cloud, extracting more data and optimizing every part of the business, from supply chains to sales.”

“Joining forces with IBM will provide us with a greater level of scale, resources and capabilities to accelerate the impact of open source as the basis for digital transformation and bring Red Hat to an even wider audience – all while preserving our unique culture and unwavering commitment to open source innovation,” said Red Hat President and CEO Jim Whitehurst.

IBM said the deal brings together the best-in-class hybrid cloud providers, enabling  companies to securely move all business applications to the cloud.

“Companies today are already using multiple clouds. However, research shows that 80 percent of business workloads have yet to move to the cloud, held back by the proprietary nature of today’s cloud market. This prevents portability of data and applications across multiple clouds, data security in a multi-cloud environment and consistent cloud management,” it said.

“IBM and Red Hat will be strongly positioned to address this issue and accelerate hybrid multi-cloud adoption,” the firm added. “Together, they will help clients create cloud-native business applications faster, drive greater portability and security of data and applications across multiple public and private clouds, all with consistent cloud management.”

In doing so, they will draw on their shared leadership in key technologies, such as Linux, containers, Kubernetes, multi-cloud management, and cloud management and automation.

IBM picks up A$1b tech partnership deal with Australian Federal Government

The Australian Federal Government has awarded IBM a new A$1 billion five-year whole of government contract to be a major technology partner

Announced by The Hon. Michael Keenan MP, Minister for Human Services and Minister Assisting the Prime Minister for Digital Transformation, the agreement is a cross-brand solutions partnership involving IBM hardware, software and cloud-based solutions, and includes joint innovation programs in quantum, cybersecurity, and research aimed at furthering the government’s digital transformation agenda.

IBM Quantum 1 IBM classed the agreement, led by the Digital Transformation Agency, as the highest value contract negotiated by the Australian Government. “It will deliver significant savings over the next five years and supports Australia’s goal to become one of the top-three digital governments in the world by 2025,” the firm added.

Under the partnership, all government agencies can access the financial benefits and technologies. For the major agencies that currently partner with IBM – Department of Human Services (DHS), the Australian Taxation Office (ATO), the Department of Home Affairs (DHA), and the Department of Defence (DOD) – the agreement improves the current arrangements, offering them the autonomy and flexibility to change the profile of their technology over the next five years.

“The Whole of Government agreement reflects the growing importance of technology to the government’s transformation agenda,” said IBM ANZ MD David La Rose. “For agencies it will be more simple and cost efficient to engage with IBM. While our technologies make it possible for government to delivery smarter, integrated, always-on digital services for citizens.”