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IBM Has Its Head In The Clouds

November 25, 2019 / Jon Younkman

IBM ,also referred to as Big Blue, has struggled with revenue growth for more than five years. In Oct. 2018, IBM announced its acquisition of Red Hat for $34 billion -- IBM's largest acquisition in its 108-year history. And it didn't come cheap, with a price tag of almost 10x sales. Red Hat is the leading provider of hybrid cloud solutions, a rapidly growing sub-sector of the overall cloud industry.The acquisition was meant to combine Red Hat's industry-leading position with IBM's incumbency and scale position to accelerate Red Hat's already explosive revenue growth, and hopefully help return IBM to top-line growth. The acquisition closed on July 9. Let's take a look at IBM's third-quarter results, the first quarter with a Red Hat contribution to see if its strategy is working.