IBM has announced it will buy Red Hat, the world’s biggest Linux company, for $34-billion. That’s more than a quarter of IBM’s market capitalisation, and comes as the legacy computer giant tries to play catch-up in cloud computing.
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Just months before Microsoft is due to open two Azure data centres in South Africa, the world’s largest cloud provider, Amazon Web Services, has announced it will also open data centre facilities in the country.
Microsoft posted another quarter of brisk revenue growth driven by cloud services, underscoring the company’s success in shifting its business toward Internet-based computing. The stock rose in extended trading.
IBM is pressing deeper into its strategy of making cloud services more compatible with competitors, rather than trying to force customers into its own walled garden.
Dimension Data’s Internet Solutions has bolstered its business cloud computing offering by adding partnerships with Amazon Web Services and Google Cloud to its CloudConnect offering.