IBM has completed its biggest - ever acquisition , the $ 34bn purchase of software company Red Hat , as part of its difficult , long - term transition from legacy computer hardware to cloud and software services . IBM’s cloud strategy has focused on helping companies stitch together multiple cloud platforms rather than compete head-on with “hyperscale” cloud providers such as Amazon Web Services, a unit of Amazon.com Inc (AMZN.O); Microsoft; and Alphabet Inc’s Google (GOOGL.O). IBM CEO Ginni Rometty said the company could respond to customer requests to switch mission - critical work to the cloud , and offer a single platform , bridging public and private cloud applications . Rometty said Red Hat CEO Jim Whitehurst and the management team will remain with the firm , which will operate as a " distinct unit within IBM " .
IBM has completed its biggest - ever acquisition , the $ 34bn purchase of software company Red Hat , as part of its difficult , long - term transition from legacy computer hardware to cloud and software services . IBM CEO Ginni Rometty said the company could respond to customer requests to switch mission - critical work to the cloud , and offer a single platform , bridging public and private cloud applications . Rometty said Red Hat CEO Jim Whitehurst and the management team will remain with the firm , which will operate as a " distinct unit within IBM " .