Aug 1, 2019

How IBM plans to make its $34 billion Red Hat deal pay off

IBM senior vice president Arvind Krishna. Photo: IBM

IBM is announcing a series of moves Thursday designed to start recouping some of the $34 billion it just spent to buy open source specialist Red Hat.

Why it matters: IBM sees a $1.2 trillion opportunity in enterprise software, services and infrastructure by 2022. But competing effectively means being able to meet customers where they are at, says IBM senior vice president Arvind Krishna.

  • Customers, he said, are looking for the flexibility to host their own software one day, move that same setup to a cloud provider the next and still have the flexibility to change cloud providers down the road.
  • "We strongly believe there is a massive opportunity to create a common platform that goes across these clouds," Krishna said in an interview.

What's happening: Most notably, it is optimizing Red Hat's software to run on IBM's cloud and servers, and it's aiming to use Red Hat as a means to take IBM's other software into private clouds as well as rival cloud platforms from Microsoft, Google and Amazon.

Yes, but: The Red Hat deal closed only three weeks ago. Much of what IBM is announcing is actually the result of a partnership announced last year.

Separately: IBM has cut as many as 100,000 jobs over the last few years, Bloomberg reports, citing court documents.

Go deeper: Trying to make enterprise software fun

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Coronavirus dashboard

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  1. Global: Total confirmed cases as of 3 a.m. ET: 5,410,228 — Total deaths: 345,105 — Total recoveries — 2,169,005Map.
  2. U.S.: Total confirmed cases as of 3 a.m. ET: 1,643,499 — Total deaths: 97,722 — Total recoveries: 366,736 — Total tested: 14,163,915Map.
  3. World: White House announces travel restrictions on Brazil, coronavirus hotspot in Southern Hemisphere Over 100 coronavirus cases in Germany tied to single day of church services — Boris Johnson backs top aide amid reports that he broke U.K. lockdown while exhibiting symptoms.
  4. Public health: Officials are urging Americans to wear masks headed into Memorial Day weekend Report finds "little evidence" coronavirus under control in most statesHurricanes, wildfires, the flu could strain COVID-19 response
  5. Economy: White House economic adviser Kevin Hassett says it's possible the unemployment rate could still be in double digits by November's election — Public employees brace for layoffs.
  6. Federal government: Trump attacks a Columbia University study that suggests earlier lockdown could have saved 36,000 American lives.
  7. What should I do? Hydroxychloroquine questions answeredTraveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
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Updated 2 hours ago - Politics & Policy

U.S. coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios. This graphic includes "probable deaths" that New York City began reporting on April 14.

The CDC is warning of potentially "aggressive rodent behavior" amid a rise in reports of rat activity in several areas, as the animals search further for food while Americans stay home more during the coronavirus pandemic.

By the numbers: More than 97,700 people have died from COVID-19 and over 1.6 million have tested positive in the U.S. Over 366,700 Americans have recovered and more than 14.1 million tests have been conducted.

World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

Japan's economy minister outlined plans on Monday to end the nationwide state of emergency as the number of new novel coronavirus cases continues to decline to fewer than 50 a day, per Bloomberg. Japan has reported 16,550 cases and 820 deaths.

By the numbers: Over 5.4 million people have tested positive for the virus as of Monday, and more than 2.1 million have recovered. The U.S. has reported the most cases in the world (over 1.6 million from 13.7 million tests). The U.K. is reporting over 36,800 deaths from the coronavirus — the most fatalities outside the U.S.