IBM has agreed to purchase Red Hat for roughly $34 billion dollars. IBM Chasing Red Hat

Red Hat has been in the Open Source software market for well over 2 decades and has established itself as one of the leading players for enterprise operating systems, Red Hat Enterprise Linux.

Open Source software is based on a model that offers a free development platform (source code) that can be openly modified and shared. Open Source has become a pivotal part operationally for large multinational companies. With the acquistion of Red Hat, IBM is banking on establishing a larger footprint in cloud computing, as it has lagged behind Amzaon, Google and Microsoft.