Gartner Research

Assess How IBM’s Acquisition of Red Hat Would Impact Your Business

Published: 19 February 2019

ID: G00379422

Analyst(s): Dennis Smith , Dennis Gaughan

Summary

IBM’s proposed acquisition of Red Hat promises to give it a stronger story with which to tap the growing hybrid cloud and multicloud opportunity. CIOs that buy from these vendors must assess risks relating to product overlap, contracts and strategic direction, in light of their organizations’ needs.

Table Of Contents

Analysis

  • IBM Places a Very Big Bet That Cloud Computing’s Future Is Hybrid
  • The Acquisition Raises Questions About Overlapping Products and Software Contract Consolidation
  • Maintaining Red Hat’s Relationships With Other Major Cloud Providers Will Be a Key Measure of the Deal’s Success for Customers
  • Red Hat OpenShift Container Platform Is the Key Technology in the Deal, Though It Generates Only a Small Part of Red Hat’s Revenue

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