IBM Buys Red Hat for $34 Billion

IBM made its biggest acquisition ever in 2018 by purchasing Red Hat, the open-source software company, for $34 billion. The deal was a clear attempt by IBM to strengthen its cloud computing position against rivals like Amazon Web Services, Microsoft Azure, and Google Cloud.

Red Hat’s expertise in enterprise Linux and hybrid cloud solutions was seen as a key asset for IBM, which had struggled to keep pace with the rapidly evolving cloud industry. While some analysts saw the move as a bold strategic shift, others questioned whether IBM could successfully integrate Red Hat without stifling its open-source culture.

Would the acquisition help IBM regain its footing in the cloud wars, or was it too little, too late?