REUTERS: International Business Machines Corp said on Tuesday it has closed its US$34 billion acquisition of software company Red Hat Inc , as it looks to ramp up its cloud computing business.
Customers want hybrid cloud applications because they"look at their IT and they say, 'Look I can't just throw it all out and rebuild it'" and instead want a mix of public and private cloud applications"with one platform across it."AdvertisementDelta chief executive Ed Bastian said in a statement the company has been"working with both IBM and Red Hat for years" and said the combined firm"will be an essential part of our digital transformation.
Red Hat CEO Jim Whitehurst and his management team will remain in place. Whitehurst will join IBM’s senior management team and report to Rometty.IBM will maintain Red Hat’s headquarters in Raleigh, North Carolina, and its facilities, brands and practices, and said it will operate as a distinct unit within IBM. Rometty said no job or cost cuts are planned at Red Hat.