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IBM Acquired Red Hat For $34 Billion To Strengthen Its Position In Hybrid Cloud Sector

IBM has just made the most significant purchase in its history as the renowned technology company acquired Red Hat, the famous open source company, for $34 billion, in an attempt to diversify its hardware and consulting businesses with products and services that generate higher profitability.

That is also the third most significant acquisition in the United States in the area of technology. IBM announced the news through a press release while Red Hat informed about the purchase through its Twitter account.

IBM currently has a market capitalization of $114 billion and will pay $190 in cash for each share of Red Hat, that is, 62% above the closing price of the value of the shares of the free software company last Friday.

“Joining forces with IBM will give us a greater level of scale, resources, and capabilities to accelerate the impact of open source as the foundation for digital transformation and bring Red Hat to an even wider audience while preserving our unique culture and an unwavering commitment to open source innovation,” said Jim Whitehurst, Red Hat CEO.

IBM Acquired Red Hat For $34 Billion, But Red Hat Would Remain the Same Open Source Company

Red Hat will maintain its independence and operate as a distinct unit within the IBM Hybrid Cloud team. A hybrid cloud is an integrated service that uses both in-house and third-party clouds to solve different functions within an organization.

“IBM will become the world’s first provider for hybrid clouds, providing companies with the only open cloud solution that will unlock the full value of the cloud for their business,” said Ginni Rometty, the IBM CEO, who also believes that the Red Hat acquisition will change the technology and cloud landscape.

IBM’s purchase of Red Hat means that the company would finally be able to compete with other tech businesses that offer cloud services, such as Amazon, Alphabet, and Microsoft. Both IBM and Red Hat expect to close the transaction during the second half of 2019.

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Crypto News

Alibaba And IBM Ranks The First In Number Of Blockchain Technology Patents Filed This Year

Technology giants Alibaba and IBM are competing for first place in a new list that ranks global entities by the number of blockchain-related patents filed to date, published on August 31st by iPR Daily. iPR Daily, a specialized intellectual property medium, says it has consolidated data from China, the European Union, the United States, Japan, and South Korea, in addition to consulting the World Intellectual Property Organization’s (WIPO) International Patent System.

Alibaba of China has just sealed first place, having filed a total of 90 patent applications related to blockchain technology, while IBM has so far registered a total of 89. In third place is Mastercard, with 80 claims, followed by Bank of America, with 53.

IBM, for its part, has consistently expanded its participation in blockchain technology in various fields of this industry. It recently signed a $740 million, five-year agreement with the Australian government to use blockchain and other new technologies to improve data security and automation in federal departments, including defense and home affairs.

China, despite its negative stance on cryptocurrencies, remains the world’s leader regarding the blockchain technology patents

The fifth on the new list is the Central Bank of China, the People’s Bank of China (PBoC), which has filed a total of 44 patent applications dedicated to blockchain technology projects, including its centralized digital currency.

As reported earlier this year, WIPO data previously indicated that the most significant number of patent applications for blockchain technology in 2017 came from China, which filed 225 patents that year, compared to 91 in the Americas, and 13 in Australia.

China’s adoption of the new blockchain technology is counterbalanced by an increasingly harsh stance against decentralized cryptocurrencies, which has intensified further in recent weeks. This divided position is reflected by Alibaba’s founder, Jack Ma, who has expressed his support for the blockchain technology, although he views crypto coins with skepticism.

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Crypto News

IBM And CLS Group To Develop Blockchain Technology Platform For Banking And Financial Operations

On July 30th, the financial institution CLS Group and the multinational technology company IBM announced the launch of a market for blockchain applications and services for banking operations.

The online store will be called LedgerConnect, and will be a private blockchain-based technology on the IBM Blockchain platform and Hyperledger Fabric technology. In turn, this platform will offer a variety of distributed ledger technology (DLT) options for financial institutions, FinTech companies, and software vendors.

Among the purposes of the applications, there is the management of customer and market data, the management of guarantees, the control of sanctions, and the monitoring of financial product negotiations, among others.

It should be noted that the CLS Group publication does not mention that these are solutions that include cryptocurrencies so they would only be blockchain applications aimed at facilitating traditional banking operations.

IBM and CLS Group to develop LedgerConnect based on blockchain technology for banking operations

The promoters of this initiative, both IBM, and CLS, will carry out a proof of concept of this platform with the participation of banking institutions such as Citigroup and Barclays. It should be noted that, following this proof of concept and the approval of relevant regulations, IBM and CLS plan to offer LedgerConnect to the industry.

LedgerConnect is part of CLS’s strategy to explore how we can provide secure and robust solutions that create efficiencies and reduce the risk for a wide range of companies operating in the financial markets. We expect LedgerConnect to deliver better efficiencies and economies of scale over distributed, single-purpose accounting networks.

Alan Marquard, the CLS Director of Strategy and Development

Marie Wieck, CEO of IBM Blockchain, said that “LedgerConnect has a unique position as a blockchain technology solution for the financial services industry,” which will help drive innovation in the industry.

Without a doubt, IBM has been one of the pioneers in the development of blockchain technology for different industries. One of its latest initiatives was the creation of a blockchain research center towards data transparency. On the other hand, banks around the world have conducted tests to determine the efficiency of the distributed ledger technology in their services.

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