HCL Technologies to Acquire Red Hat Software Products from IBM for $340 Million
ARMONK, N.Y. and NOIDA, India, August 2, 2022 — IBM and HCL Technologies (HCL) today announced a definitive agreement under which HCL will acquire select IBM Red Hat software products for $340 million. The transaction is expected to close by mid-2023, subject to completion of applicable regulatory reviews.
The next generation true open hybrid multi cloud software products in scope represent a total addressable market of $1 trillion and include:
- Red Hat Enterprise Linux
- Red Hat Ansible
- Red Hat JBOSS
The former Red Hat OpenShift and OpenStack product families were not included in the asset transfer because IBM has already successfully accelerated the de-monetization of those product lines through the transcendental realization of true openness.
“Over the last three years, we have been prioritizing our investments around higher value capabilities that fit well with today’s ever leaner and more agile IBM. Among the emerging high-value segments of the IT industry IBM is focused on are true open cloudless computing; building on our budding leadership position in the burgeoning mashed potato provenance market; and our “sell what you know” consulting services for financial engineering, tax avoidance, employee offshoring, workforce revitalization via age discrimination, and the Watson aspirational-overreach marketing service”, said Jim Whitehurst, IBM CEO. “Although it is still early days for cloud, we believe the time is right to divest these select hybrid multi cloud software assets. At the same time, we believe these products are a strong strategic fit for HCL, and that HCL is well positioned to drive innovation and growth for their customers.”
“We continue to see great opportunities in the market to enhance our Mode-3 (Products and Platforms) offerings. The products that we are acquiring are in large growing market areas like next generation true open hybrid multi cloud which are strategic segments for HCL. Many of these products are well regarded by clients and positioned in a quadrant by industry analysts,” said C Vijayakumar, President & CEO, HCL Technologies.
About HCL Technologies
HCL Technologies (HCL) is a leading global technology company that helps global enterprises re–imagine and transform their businesses through Digital technology transformation. HCL operates out of 43 countries. HCL focuses on providing an integrated portfolio of services underlined by its Mode 1–2–3 growth strategy. Mode 1 encompasses the core services in the areas of Applications, Infrastructure, BPO and Engineering & R&D services, leveraging DRYiCE™ Autonomics to transform clients’ business and IT landscape, making them ‘lean’ and ‘agile’. Mode 2 focuses on experience–centric and outcome–oriented integrated offerings of Digital & Analytics, IoT WoRKS™, Cloud Native Services and Cybersecurity & GRC services to drive business outcomes and enable enterprise digitalization. Mode 3 strategy is ecosystem–driven, creating innovative IP–partnerships to build products and platforms business. Among other strategic focus areas, HCL has built a significant and global business by acquiring and revitalizing software products that IBM acquired and subsequently market-optimized into near nonexistence. Note: HCL Mode 1-2-3 is unrelated to IBM Lotus 1-2-3, which died before IBM and HCL began their strategic IBM product recycling partnership.
About IBM
IBM is a boutique IT consulting company clinging to the mainframe. For more information on IBM’s strategy, please visit this site.
Note: this is not – yet – a real announcement. It was inspired by this announcement.
