IBM has completed its biggest-ever acquisition, the $34bn purchase of software firm Red Hat, as part of its difficult, long-term shift from legacy computer hardware to cloud and software services. IBM CEO Ginni Rometty said the company could respond to customer demands to switch mission-critical work to the cloud, and offer a single platform, bridging public and private cloud applications. The deal is IBM's biggest acquisition since it bought Sun Microsystems for $7.4bn, in 2005.
IBM has completed its biggest-ever acquisition, the $34bn purchase of software firm Red Hat, as part of its difficult, long-term shift from legacy computer hardware to cloud and software services. IBM CEO Ginni Rometty said the company could respond to customer demands 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".