IBM. We Bought a Big Time Player.

October 29, 2018

I read “IBM to Acquire Cloud Computing Firm Red Hat for $34 Billion.” Note that CNN Web page plays truly annoying and unrelated media when one  attempts to figure out the article.

I noted

The companies called the deal, which still needs approval from shareholders and regulators, the “most significant tech acquisition of 2018.” The deal is expected to close in the second half of 2019.

Three observations:

  1. Watson is obviously not doing much for IBM other than roviding marketers with a flow of funds to create spectacular ads.
  2. IBM appears to know that it is going to be breating Amazon and Microsoft exhaust fumes in the cloud sector unless it does something that sort of makes sense.
  3. The management decision comes too late for some major procurement wins.

Remarkable. Watson, what’s up? Oh, right.

Stephen E Arnold, October 29, 2018


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