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Technology Stocks : Investing in Exponential Growth

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From: Paul H. Christiansen10/30/2018 9:51:02 AM
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IBM’s $34 billion purchase of Red Hat is a mega-bet on a coding revolution

The world’s biggest-ever deal for a software company points toward a significant change in how code is being developed for the computing cloud.

The news: Big Blue is buying Red Hat, a company that has made its reputation in open-source software development, where code is made freely available so a community of developers can keep updating it.

Not just a business deal: IBM’s move is a big bet on what’s known as containerization, a new way to create applications for use in the cloud. A huge headache with traditional software development is that code developed in one computing environment can prove glitchy when deployed in another. Containerization involves bundling together an application with all of its related libraries, configuration files, and other things needed for it to run efficiently. These packages, or containers, can be used to create applications that run smoothly on any cloud service.

Container shipping: Containerization’s fans claim that companies using it will be able to create and deploy applications faster than rivals. But managing containers is still a costly headache. That’s one reason why venture capitalists have been pouring billions of dollars into container startups.

Buying Red Hat gives IBM an automatic edge in the emerging field.

MIT Technology Review – The Download
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