IBM’s planned $34 billion acquisition of Red Hat could have an impact on the federal cloud market and agencies’ information technology modernization plans, Bloomberg Government (BGOV) reported. IBM agreed to pay $190 in cash for each share of Red Hat in a move to establish a global provider of hybrid cloud platforms. Red Hat has seen an expanding presence in the federal market in recent years as agencies ramp up the adoption of open-source software development and BGOV noted that IBM could potentially secure federal contracts and generate interest from current Red Hat users driven by its capacity to provide cloud or on-premises services optimized for Red Hat’s platform-as-a-service.
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