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This is a massive cash expenditure. IBM's biggest bet to be back into the cloud game. Given the amount of cash involved this might be IBM's last card, at least
by rafaelturk 8y ago
This is a massive cash expenditure. IBM's biggest bet to be back into the cloud game. Given the amount of cash involved this might be IBM's last card, at least from an M&A perspective, so this deal needs to work.
RedHat is much smaller than IBM, however far better managed with a clear product roadmap, lean sales and customer support. In a good scenario a reverse takeover will take place and RedHat management will take control and lead new IBM to a better future, however this is very unlikely.
IMO: This is great for RedHat shareholders, terrible for the new IBM co...
- pinewurst 8y agoThere are strong rumors that IBM will be selling/spinning off its services group so perhaps that’s the funding justification?
- jacques_chester 8y agoIf this kind of a split were happening it would be more accurate to describe it as the services group spinning off its product department.
- pinewurst 8y agoThat's an interesting thought, though Red Hat has a significant services group too, so they'd still have one afterward.