Join Telegram Study Group ▷
Open source giantRed Hat Certification was acquired by IBM recently for a roughly about $34 billion, capping off a long-standing partnership between the two companies, the pair has announced this in a press release.
The Red Hat certification is considered to be a model that uses open source platforms and tools and makes it very enterprise-friendly, and is also hailed as the first multi-billion-dollar open source company.Reactions to the deal were mixed, with Red Hat leaders while praising the deal, but employees and various tech leaders on Twitter would be raising concerns about it
Here’s what candidates are needed to know about this acquisition:
1. Everything is about the cloud
In the official Red Hat press release, cited above, the word "cloud" which would be mentioned roughly 40 times. As IBM CEO Ginni Rometty said in the same release, the deal is about creating IBM as a leader in hybrid multi-cloud adoption. As ZDNet's Larry Dignan has written, IBM is looking forward to managing public cloud providers in order to make themselves better so that they could compete with leaders in the space like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform.
2. Overall, it is considered as a best case scenario:
Lots of candidates, in the open source community, have lamented the acquisition of Red Hat. Red Hat that are represented what few thought was possible with open source are now building an independent company to the tune of billions of dollars. But, sticking to one's principles doesn't always going to pay the bills.
Considering Red Hat's other rumored suitors like the Google, Oracle, Dell EMC, IBM has an attractive good track record at protecting open source data, as have been noted by Dignan on ZDNet. In the press release, IBM committed to maintaining Red Hat's culture and not restraining its partner ecosystem. That means that Red Hat would be allowed to continue working with AWS, Microsoft Azure and Google Cloud.
3. Value of Data and AI's isn't fully realized:
As IBM began its transition away from its legacy of the hardware business, it has made a big bet on data. And it wasn't alone in making that bet, as tech specialists were calling data "the new oil" and claiming it to be held unheard of value that was yet untapped. Except that it wasn't. Recently, IBM's division of Cognitive Solutions the home of Watson was considered to be one of the worst performing segments of the company.
4. The integration would be fast as well as fragile:
With IBM's flat revenues in Q3 2018, the company would need a quick injection of innovation so as to gain the ball rolling and inspire shareholder confidence. It means that the company would likely be going to try to integrate Red Hat quickly, which will undoubtedly be aided by their shared propinquity in North Carolina's Research Triangle. However, IBM still would need to do this without damaging Red Hat.
5. Little direct impact
As pointed out by Mueller, there would be a little to no immediate impact for most parties which are being involved in this deal. There are hardly any implications for Red Hat partners and IBM customers, but Red Hat customers would have to be absolutely sure that IBM's vision for the company would be fitting their needs for the Red Hat products that are utilized by them. Additionally, the deal could help the customers to see the IVM as the new Switzerland of on-premises, Mueller has written about, which is a trend that CXOs should watch.
If you are looking forward to gaining any of the Red Hat Certification, you can get yourself trained through the training provided by the SPOTO.
