Sunday, August 4, 2019

IBM Closes Landmark Acquisition of Red Hat for $34 Billion

With cloud, the future is bright!.  IBM (NYSE:IBM) and Red Hat announced  that they have closed the transaction under which IBM acquired all of the issued and outstanding common shares of Red Hat for $190.00 per share in cash, representing a total equity value of approximately $34 billion. Hybrid cloud is an emerging $1 Trillion market. That could be achieved , if you can move data and applications across multiple clouds and make that portable. For that , you got to be hybrid, multi-cloud, Open , secure end-to-end and have multi-cloud management. Big Blue’s big reveal is the release of IBM Cloud Paks: the wholesale containerisation of IBM software that plugs into Red Hat’s OpenShift Platform-as-a-Service (Paas). IBM says over 100 of its key software offerings will now run on any cloud – from Alibaba to Azure, Google Cloud Platform to AWS – as it reveals the results of a major integration effort with newly acquired Red Hat.
Acquisition positions IBM as the leading hybrid cloud provider and accelerates IBM’s high-value business model, extending Red Hat’s open source innovation to a broader range of clients. IBM preserves Red Hat’s independence and neutrality. Red Hat will strengthen its existing partnerships to give customers freedom, choice and flexibility. Red Hat’s unwavering commitment to open source remains unchanged. Red Hat OpenShift is a hybrid cloud, enterprise Kubernetes platform. Together, IBM and Red Hat will deliver next-generation hybrid multicloud platform.

IBM said: “This is the software that keeps the world’s largest systems moving – from ATMs to flight control instruments – and is trusted by 96 of the Top 100 global banks, nine of the top 10 car brands and eight of the world’s Top 10 airlines. Enterprises don’t want to build on a proprietary stack alone.  That’s why the launch of IBM Cloud Paks on Red Hat is so powerful – it enables enterprises to expedite the shift of their core business apps to the cloud in a secure and consistent way.What cloud brings to the table is easy consumption of related pieces of software. So Cloud Paks are not really products; they’re capabilities.“Containerisation is easy.  Bringing it into a Kubernetes platform with all of the orchestration capabilities, whether it’s scaling it, or whether it is finding the right place to play, is hard. It’s not just about packaging software into a little container, it’s about how you bring it into an orchestrated, multi-container, scalable environment that gives you not just deployment benefits but operational benefits.

IBM goes cloud-native with Red Hat OpenShift- that this initiative is "optimised" to run on the OpenShift containerisation platform. This, the company claims, will allow customers to build mission-critical apps once and then run them on most public clouds, including AWS, Azure, Google Cloud Platform, Alibaba and, of course, its own IBM Cloud.
After closing a $34 billion deal that redefines the IT landscape, Big Blue has released five Cloud Paks—integrated middleware that sits on top of OpenShift, Red Hat's container management platform and now IBM's official Kubernetes platform of choice. In its cloud-native form, IBM's software will be offered as pre-integrated, containerised modules called IBM Cloud Paks. The five Cloud Paks are all IBM-certified and enterprise-ready.

1) The Applications Cloud Pak offers a platform to build, test and deploy apps with a modern,    micro-services framework, including developer tools and Red Hat runtimes.
2) The Integration Cloud Pak enables a modern approach to integrating apps, data, cloud services    and APIs.
3) The Multi-Cloud Management Cloud Pak gives customers consistent visibility into governance across environments, both on- and off-premises to handle the "new reality of the hybrid multi-cloud world.
4) The Automation Cloud Pak helps transform business processes, decisions and automate tasks, including management of content.
5) The Data Cloud Pak helps store, analyze and extract value from data, and enable artificial intelligence.
Consistency and choice is what it's providing -  Consistency in environment, choice to run it in any infrastructure you want, public or private, all within a supported and secure framework.  The real opportunity is around enabling partners together. A lot of IBM partners are starting to build out Red Hat practices and Red Hat partners are doing the same, and the Cloud Paks are a great entry point.

In addition to Cloud Paks, IBM made three other Red Hat-centred announcements .

The first is Red Hat OpenShift on IBM Cloud, a "flexible, fully-managed service" that the company claims will "help enterprises modernise and migrate to a hybrid cloud infrastructure".

The second is the news that Red Hat OpenShift is now available for IBM Z and LinuxONE, having previously only been available on Power Systems and Storage.

Finally, there are new consultancy and technology services available from IBM for Red Hat. 

Before it officially announced those products, IBM had introduced predecessors such as ICP for Data, Multi-Cloud Manager and Cloud Automation Manager.

The end result: users can run most IBM software like database management tool DB2, or machine learning platform Watson Studio (even some mainframe applications) pretty much anywhere that OpenShift runs. Use of the new features will reduce development time by up to 84 percent and operational expenses by up to 75 percent, IBM claims. Enterprises want a large software ecosystem running on a common platform; think of the Internet as an analogy. This has the potential to really make that happen. Hybrid cloud, multicloud are a focal area for innovation: how do you place workloads? With the emergence of things like 5G, moving AI to the edge; IoT processing at the edge. The platform and the middleware (from applications to databases); those two layers coming to together is really going to accelerate innovation.

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