Raleigh software company Red Hat delivers again for parent IBM
In 2019, IBM purchased the Raleigh open-source software giant Red Hat for the handsome sum of $34 billion. The parent company, known as Big Blue, hasn’t seemed to regret adding something red.
Red Hat revenue grew 18% in the third quarter of 2022, which ran from July to September, IBM reported Wednesday. This continues a streak of Red Hat revenue increasing at least 15% every fiscal quarter since the acquisition.
IBM reported 15% revenue growth overall, beating expectations. Yet even when IBM’s overall growth has stalled or decreased in recent quarters, Red Hat has been a consistent producer.
Addressing investors Wednesday, IBM CEO Arvind Krishna repeatedly touted Red Hat’s performance driving the larger company’s growth in software and consulting.
“With our enterprise incumbency and global scale, we continue to see an increase in large deals, as well as strong cross-sell and up-sell across Red Hat solutions,” he said.
Founded in 1993, Red Hat is considered one of the world’s leading open-source software companies. While anyone can freely access its open-source software, the company sells subscriptions for consulting and security services.
Red Hat employs more than 2,000 people at its downtown Raleigh headquarters. It’s sale to IBM was the largest software acquisition in history.
In the deal, IBM promised to respect Red Hat’s neutrality by not interfering with its open-source model and to allow Red Hat to sell services to IBM’s competitors.
This story was produced with financial support from a coalition of partners led by Innovate Raleigh as part of an independent journalism fellowship program. The N&O maintains full editorial control of the work.
This story was originally published October 21, 2022 at 2:35 PM with the headline "Raleigh software company Red Hat delivers again for parent IBM."
