IBM Acquires Red Hat

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29 October 2018
John Dwyer

Enterprises Embracing Open Source

IBM/ Red Hat Acquisition

IBM has announced that it will acquire Red Hat in a deal worth approximately $34 billion.

This is further evidence of companies appreciating the power of open source ecosystems as prior deals this year show, such as:

-Microsoft’s purchase of GitHub for $7.5bn

-Salesforce’s purchase of MuleSoft for $6.5bn

Financial Services Embracing Open Source

Financial services institutions are also embracing open source.

Deutsche Bank started making its computer code publicly available for the first time in 2017.

This was the bank’s first contribution to open source technology.

Blockchain Ecosystems

Public blockchains demonstrate the power of open-source ecosystem effects.

Bitcoin has inspired an entirely new ecosystem which is leveraging incentive mechanisms, rewarding members of communities, creating network effects, and new business models.

We have explored the ecosystem effects of open-source when combined with tokenization in many of our reports.

We believe that we are on the cusp of a tipping point in digital asset innovation through the combination of:

  • A digitally-savvy user-base who embrace new technology;
  • The power of open collaboration by developers; and
  • Entrepreneurs identifying new business models within open-source software.

You can read about that here:

Open Source Strategy

It won’t be all plain sailing though.

Generating sustainable competitive advantage within an open-source environment is fundamentally different to proprietary software.

We explored different ways for new fintechs and incumbent corporations to think about this in this report:

However, it is clear that open source will drive future value-generation and those institutions with a strategic advantage in digital assets will thrive in this new finanial environment.

We can see this already with the financial strength of the likes of Binance, Coinbase, and other new digital asset institutions.

How long before one of these new digital asset entrants acquires a legacy financial institution?

Insight details

Insight Format
Geographic Focus
Asia-Pacific, EMEA, LATAM, North America