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IBM acquires Red Hat for $34 billion, aims to lead Hybrid Cloud space

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San Francisco, Oct 29: In a strong signal to dominate the emerging $1 trillion Hybrid Cloud market, tech major IBM has announced to acquire Open Source Solutions leader and Linux Operating System owner Red Hat for a massive $34 billion.

The acquisition, IBM’s biggest so far, will provide an open approach to Cloud, featuring unprecedented security and portability across multiple clouds, a joint statement said late Sunday.

The deal, once it goes through, will make IBM the top Hybrid Cloud provider in an emerging $1 trillion growth market.

“The acquisition of Red Hat is a game-changer. It changes everything about the cloud market,” said Ginni Rometty, IBM Chairman, President and Chief Executive Officer.

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

Red Hat will operate as a distinct unit within IBM’s Hybrid Cloud team.

IBM will acquire all of the issued and outstanding common shares of Red Hat for $190 per share in cash, representing a total enterprise value of approximately $34 billion.

According to Dave Bartoletti, Vice President and Principal Analyst at Forrester, IBM embraced Linux and open source software earlier than many tech titans of the last era.

“Red Hat has built the most successful company ever focused solely on Linux and open source middleware. While IBM has struggled to keep up with Amazon Web Services, Microsoft and Google in the public cloud market, this deal gives IBM a new stronghold in the cloud development platforms market,” Bartoletti told IANS.

Most companies today are only 20 per cent along their cloud journey, renting compute power to cut costs.

“The next 80 per cent is about unlocking real business value and driving growth. This is the next chapter of the Cloud. It requires shifting business applications to hybrid cloud, extracting more data and optimising every part of the business, from supply chains to sales,” informed Rometty.

IBM and Red Hat will be positioned to accelerate Hybrid multi-cloud adoption.

“Open source is the default choice for modern IT solutions, and I’m incredibly proud of the role Red Hat has played in making that a reality in the enterprise,” said Jim Whitehurst, President and CEO, Red Hat.

“Joining forces with IBM will provide us with a greater level of scale, resources and capabilities to accelerate the impact of open source as the basis for digital transformation and bring Red Hat to an even wider audience,” he added.

IBM’s and Red Hat’s partnership has spanned 20 years, with IBM serving as an early supporter of Linux, collaborating with Red Hat to help develop and grow enterprise-grade Linux and more recently to bring enterprise Kubernetes and hybrid cloud solutions to customers.

These innovations have become core technologies within IBM’s $19 billion Hybrid Cloud business.

IBM and Red Hat will continue to build and enhance Red Hat partnerships, including those with major cloud providers, such as Amazon Web Services, Microsoft Azure, Google Cloud, Alibaba and more, in addition to the IBM Cloud.

“IBM is committed to being an authentic multi-cloud provider, and we will prioritise the use of Red Hat technology across multiple clouds” said Arvind Krishna, Senior Vice President, IBM Hybrid Cloud.

The Red Hat acquisition by IBM is the third-biggest in the history of US technology.

The biggest acquisition was the $67 billion merger between Dell and EMC in 2016 and JDS Uniphase’s $41 billion acquisition of optical-component firm SDL in 2000.

Last week, Microsoft closed a $7.5 billion acquisition of the code hosting and collaboration company GitHub.

IANS

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Manufacturing GVA growth in Q2 ‘surprising’: SBI Report

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New Delhi, Nov 28 : The manufacturing sector played a major role in narrowing down the India’s GDP contraction in Q2 of FY21. An SBI Ecowrap report, however, dubbed the growth in manufacturing GVA as “astonishing” as the IIP manufacturing for the same period declined by 6.7 per cent.

India’s GDP in the July-September period contracted 7.5 per cent, compared with 23.9 per cent in the preceding quarter.

The GVA in Q2 2020-21 from the manufacturing sector grew 0.6 per cent, as compared with a degrowth of 0.6 per cent in the corresponding quarter of the previous fiscal.

The report by Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India, said: “Though the whole press release is full of surprising numbers, the most astonishing number is the positive growth in manufacturing in Q2.”

He noted that despite being the worst affected sector in Q1 (due to lockdown), it is quite puzzling how manufacturing turned itself around.

The IIP manufacturing and manufacturing GVA growth are highly correlated (almost more than 0.90) and this correlation collapsed in Q2 when IIP manufacturing declined by 6.7 per cent (average of July/August/September) while manufacturing GVA grew by 0.6 per cent.

He said that one possible reason for this could be stellar corporate GVA numbers in Q2 on the back of massive purge in costs.

Further, he said that small companies, with turnover of up to Rs 500 crore, are more aggressive in cutting cost, displaying reduction in employee cost by 10-12 per cent.

“This could turn a potential headwind in future in terms of a drag on consumption. Additionally, there is evidence of inventory build-up that could act as a drag on future manufacturing growth,” said the report.

“Interestingly, government consumption expenditure has also nosedived in Q2, that is difficult to explain, as such expenditures are typically pro cyclical.”

During the July-September period, agriculture sector continued to perform well with its growth pegged at 3.4 per cent. Services remained in the negative territory, although the decline was contained as trade, hotels, transport, communication and services related to broadcasting showed recovery.

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Apple patents new MacBook Touch Bar with Force Touch technology

It was also made available on iPhones and it was known as 3D Touch. Later with iPhone XR, Apple decided to replace 3D Touch with Haptic Touch for a better experience.

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San Francisco: Apple is reportedly planning to add Force Touch sensors to the OLED Touch Bar on a future MacBook Pro.

A new patent published by the US Patent And Trademark Office, suggests Force Touch could have an expanded role in the future on the Mac, with the development of a new pressure-sensitive Touch Bar, reports MacRumors.

The patent offers visual examples of how force-sensing technology would be implemented in a MacBook Touch Bar, with Force Touch circuitry surrounding the touch-sensitive OLED strip.

“The secondary display and force-sensing circuitry may be encapsulated between two glass layers that are bonded to one another by a frit. In some embodiments, the force-sensing circuitry is formed from or constitutes part of, the frit,” reads the abstract of the patent application

Force Touch sensors were introduced for the first time with the first-generation Apple Watch and they allow the screen to identify the touch pressure in order to perform different actions based on touch intensity.

This technology was then introduced to the MacBook trackpad in 2015.

It was also made available on iPhones and it was known as 3D Touch. Later with iPhone XR, Apple decided to replace 3D Touch with Haptic Touch for a better experience.

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Black Friday in-store shopping drops amid pandemic

Black Friday, one of the most anticipated days by consumers, shifted its consumption patterns due to the COVID-19 pandemic this year. More shoppers have opted for online sales, and in-store shoppers tend to buy things much faster than before.

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New York: Christina, a 74-year-old woman, only spent about five minutes buying a toaster oven at Macy’s flagship store in New York city on Black Friday morning.

“It was quick, it was a short line. It is not very busy now,” the shopper, who did not give her surname, told Xinhua.

There were a few dozen in-store shoppers at Macy’s flagship store, Saks Fifth Avenue and other retailers’ stores in New York City on Black Friday, a sharp contrast to the crowded scenes in the same time any other year.

Black Friday, one of the most anticipated days by consumers, shifted its consumption patterns due to the COVID-19 pandemic this year. More shoppers have opted for online sales, and in-store shoppers tend to buy things much faster than before.

“This year is scary. You want to get out of the store quicker to protect yourself even though we have masks. We have to prevent socializing and gathering with large crowds. We have to keep a distance,” the 74-year old shopper said.

In the meantime, U.S. consumers’ online spending made a new record high of $5.1 billion on Thanksgiving Day with a year-on-year growth of 21.5 per cent, according to the data issued by Adobe Analytics.

As of Thursday afternoon, coronavirus deaths have added up to 24,241 and confirmed cases to 302,522 in New York City, according to The City, a project that tracks the spread of confirmed COVID-19 infections and fatalities in New York City.

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