IBM closes $34 billion Red Hat acquisition: Now it’s time to deliver

IBM has closed its $34 billion acquisition of Red Hat, vowed to keep its new unit independent, deliver innovative hybrid cloud stacks and grow.

Here are the key items to watch now that Red Hat is part of IBM. Can Red Hat growth continue and grow IBM overall? IBM’s cloud revenue is 25% of total sales on a run rate of $19 billion, but Red Hat is small with fiscal 2019 sales of $3.4 billion, up 15% from a year ago.

Although Red Hat’s revenue profile is fairly substantial with strong levels of profitability, we note that purchase accounting treatment of the target company’s deferred revenue will make IBM unable recognize a meaningful portion of Red Hat’s deferred revenue as it converts to actual revenue; this is while IBM will have to incur 100% of Red Hat’s operating expense.

Will Red Hat truly remain neutral and independent? IBM buying Red Hat is probably the best outcome if you believe in open source.

“Independence is essential to ensuring Red Hat partners will have an equal shot. Red Hat and IBM feels strongly about that,” he said.

Is IBM-Red Hat a multi-cloud point guard? IBM reiterated that with Red Hat it will continue to expand partnerships with all the leading cloud providers such as Amazon Web Services, Microsoft Azure, Google Cloud and Alibaba.

Will developers stick with Red Hat? It is worth noting that Red Hat and IBM spent a lot of digital ink on what the deal means for developers.

This article was summarized automatically with AI / Article-Σ ™/ BuildR BOT™.

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DARPA Explores New Computing Architectures to Deliver Verifiable Data Assurances

Modern computing systems must be able to communicate with other systems, including those with different security requirements.

To create scalable solutions that provide safe, verifiable methods of tracking information and communications between systems, DARPA launched the Guaranteed Architecture for Physical Security program.

The goal of GAPS is to develop hardware and software architectures that can provide physically provable guarantees around high-risk transactions, or where data moves between systems of different security levels.

DARPA wants to ensure that these transactions are isolated and that the systems they move across are enabled with the necessary data security assertions.

The new hardware components and interfaces are designed to provide system designers with a library of hardware tools to securely isolate data during transactions.

Finally, the integration and validation of the hardware and software architectures on DoD systems could be used to demonstrate the capability and maturity of the GAPS approach for the kinds of problems DoD system integrators currently face, and expect to see in the future.

The verifiable security properties created under GAPS may also help create safer commercial systems that could be used for preserving proprietary information and protecting consumer privacy.

This article was summarized automatically with AI / Article-Σ ™/ BuildR BOT™.

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