Open source software provider Red Hat saw its revenue growth slow significantly in fiscal 2019 as sales of its subscription software faltered. But the top sales executive at IBM, which completed a $34 billion acquisition of Red Hat on Tuesday, says being part of IBM will help get Red Hat back on track.
In an exclusive interview with The Information, Martin Schroeter said IBM’s acquisition of Red Hat was motivated by a belief that Red Hat can help IBM continue to grow its cloud computing business. He says Red Hat’s revenue growth will accelerate because of IBM’s deep relationships with many of the world’s largest companies. IBM also expects Red Hat customers to buy additional IBM products, such as cybersecurity services and software, according to Mr. Schroeter.