Why IBM Paid $34 Billion for a Company That Gives Away Software for Free

Why IBM Paid $34 Billion for a Company That Gives Away Software for Free

Date:30 October 2018Author:Brendon

IBM just paid a mind-blowing $34 billion for a software company that does not sell software. Its new acquisition, Red Hat, actually does just the opposite.

Over 25 years of existence, Red Hat has made a habit of buying companies that sell proprietary software and then releasing that software for free.

The acquisition of Red Hat, IBM’s largest ever, follows in that same tradition of going to where the people are.

Red Hat’s business, while still concerned with selling its own flavour of Linux, has moved on to providing support and development for open-source software that’s widely used in data centres and cloud computing applications by companies

Popular Mechanics

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