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Merging with Red Hat is turning IBM a faster moving tech giant - Business Insider

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A top IBM exec explains how the $34 billion merger with Red Hat is helping it speed up and make faster decisions right at a crucial juncture in its big cloud play

was that the 109-year tech behemoth would end up changing — and perhaps even destroying — the 27-year-old company.

Lord's insights were echoed by Craig Muzilla, a 14-year Red Hat veteran who has become his new partner. Muzilla explained how, about a year into the merger, the smaller software company has managed to keep its more free-flowing culture intact. "In the past at IBM, we would have waited for an executive leadership meeting to actually even sort of get on the phone to address it," Lord said.That speed is critial for IBM, which on Monday reported another drop in revenue as it prepared to spin out a big segment of its IT services business.

But those concerns have generally been put to rest, Muzilla said, noting that IBM "structured us so that we're independent. IBM shares fell more than 5% in on Tuesday as Wall Street analysts noted that the economic uncertainty during the pandemic continues to weigh on the tech giant. The one bright spot was Red Hat.

 

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