IBM Grabs Open-Source Red Hat for $34 Billion

The eight-striped wordmark of IBM, the letters “IBM” in City Medium typeface. Introduced in 1967. Trademarked by International Business Machines Corporation.

Declared the third largest tech merger in history, and the largest for a software company, IBM and Red Hat have come to a deal in which IBM will purchase Red Hat for $34 billion. IBM says the merger will improve their cloud-based products.

The deal involves IBM getting all the issued and outstanding common stocks of Red Hat for $190 each share in cash. That surpasses by $70 the price of the stock just three days prior, $116.68 a share.

“The acquisition of Red Hat is a game-changer. It changes everything about the cloud market,” said IBM’s chairman, president and CEO, Ginni Rometty.

“IBM will become the world’s number one hybrid cloud provider, offering companies the only open cloud solution that will unlock the full value of the cloud for their businesses.”

Most companies can’t progress due to the limits presented by closed platforms that prevent them from making the transformation to cloud computing. Red Hat solves the problem for IBM due to its open platform configuration.

IBM earned it reputation as a computer hardware company, but it has recently made cloud computing a priority for its growth strategy, like Amazon and Microsoft. The company has been changing their focus to include more analytics, mobile and security.

Red Hat will continue to run its business independently as a separate unit of IBM. Red Hat president and CEO Jim Whitehurst and the management team already in place will continue as is, joining IBM’s senior management team, with Rometty leading the team.

“Today is a banner day for open source,” said Paul Cormier, Red Hat’s vice president and president of products and technologies. “The largest software transaction in history and it’s an open source company. Let that sink in for a minute. We just made history.”

Red Hat was founded in 1993, launching its famous version of Linux OS one year after. It became a pioneer of the open source movement that grew to counter closed source companies like Microsoft which based their strategy on keeping their source codes secret.

The company is based in Raleigh, North Carolina with a presence in 35 countries with about 12,000 employees. It is one of the most well-known open-source firms with customers paying for custom-made software solutions. In fiscal year 2018 the company saw a net profit of $259 million on a turnover of $2.9 billion, which was an increase of 21 percent over 2017.

Breast Cancer Research Foundation: 2018 Symposium and Awards Luncheon

The Breast Cancer Research Foundation Symposium and Awards Luncheon was held on October 25, 2018 at the New York Midtown Hilton. This awards luncheon marked the culmination of Breast Cancer Awareness Month, observed in October.

This important event acknowledged the efforts of over 300 scientists who have made important strides in the fight against breast cancer. Dr. Hedvig Hricak received the Jill Rose Award for outstanding research excellence. Hedvig Hricak is the current chair of the Department of Radiology at Memorial Sloan-Kettering Cancer Center, and much of Hricak’s research focuses on cancer detection and treatment. Mary Dillon, CEO of Ulta Beauty, received the Sandra Taub award for philanthropy for funding more than 440,000 hours of breast cancer research.

The event was hosted by Amy Robach (a breast cancer survivor and ABC news anchor) and actor Andrew Shue.

US Hosts Maritime Trade Talks with UK On Board the HMS Queen Elizabeth

Official Portrait of  Robert E. Lighthizer.

UK International Trade Secretary Dr. Liam Fox hosted several events designed to reinforce the economic relationship between the UK and the USA. The events took place on October 22, 2018 on board the UK’s Royal Navy’s HMS Queen Elizabeth, docked in New York Harbor.

The New York events come in the wake of the announcement by the US Treasury Secretary, Robert Lighthizer, that the US will commence talks with the UK to forge a new US-UK Free Trade Agreement to go into effect when the UK leaves the European Union.

The Department for International Trade presented a round-table discussion including some of the UK’s key computer companies. They presented their new technological advances to several US Fortune 500 companies in the hopes of forging some business partnerships.

The Secretary, Dr. Fox, spoke during the proceedings. He emphasized the ability of the UK to protect against serious cyber threats as they grow in number and danger. He announced a new sub-committee of the Board of Trade which will investigate what methods UK companies can use to grow the amount of imports in the cyber space, and how UK-US cooperation can improve the fight against cyber-attacks.

The floating backdrop of the great ship helped set the stage for Dr. Fox’s joining with the Maritime UK to host the very first Maritime Nations Forum between the US and the UK. The forum focused on the ways these two great sea-faring nations can improve maritime trade and relations.

Economy Hot Says JOLT Data

Unemployment by county in the United States 2017.

The numbers for August are in, and it seems they are telling a happy story right now about employment and the US economy. The positive findings appear in the Bureau of Labor Statistics’ Job Openings and Labor Turnover Report (JOLT), which is an important report that does not get enough attention.

According to JOLT there were 7.14 million job openings in the USA in August, a record number. In July there were 7.10 jobs available, which was also an historic high. It seems right now is one of the best times in US history to be job hunting.

JOLT’s assessment is that the economy is running hot. August was the fifth consecutive month in which there were more jobs available than there were unemployed people to fill them. According to JOLT there were about 1.2 million more jobs than the 5.96 million unemployed. That has never happened before, at least not since series began in 2000. Also setting records is the number of new hires, which reached 5.78 million in August.

Workers are also feeling more confidence in the labor market in general. That story is told by what is known as the “quit-rate.” In August about 3.58 million workers left their jobs voluntarily, a sign, according to economists, that people feel they can take a chance and leave their old job in hopes of finding a new, better job. The number for August 2018 was up by 12.7% over last years “quit-rate” number.

European Wind Firm Expands to US Market with $510 million Purchase of US Offshore Wind Company

The world’s largest offshore wind developer, Denmark-based Ørsted, has acquired the US-

Havvindparken Sheringham Shoal. Photo courtesy (Foto: Harald Pettersen/Statoil)

based Deepwater Wind LLC, for $510 million. Ørsted is seeking to expand into the US market, which it views has having a huge potential for growth.

After proving successful as an industry in Europe, offshore wind development is having many of the subsidies that have helped the industry grow since the early 1990s rolled back. Wind energy development in the USA is the natural next step.

Deepwater Wind LLC is the developer of the only offshore wind farm in the USA, with a capacity of about 3.3 gigawatts (GW.) Ørsted’s USA portfolio now has a capacity of 5.5 GW.

So far Ørsted has been unsuccessful in getting a better foothold in the US market, losing out on several auctions. Deepwater, in contrast, has been able to achieve more through auctions, and now has the rights to developing offshore wind power for use in Rhode Island, Connecticut and New York.

“With this transaction we’re creating the number one offshore wind platform in North America,” said Ørsted’s offshore wind chief Martin Neubert.