(Oct 29): IBM’s purchase of Red Hat Inc is a US$33 billion ($45.5 billion) bid aimed at catapulting the company into the ranks of the top cloud software competitors.

The cash deal, IBM’s biggest ever by far, boosts the 107-year-old computer-services giant’s credentials overnight in the fast-growing and lucrative cloud market — and gives it much-needed potential for real revenue growth. The company once synonymous with mainframe computing has been slow to adopt cloud-related technologies and has had to play catch-up to market leaders Amazon.com Inc and Microsoft Corp in offering computing and other software and services over the internet.

"The acquisition of Red Hat is a game-changer. It changes everything about the cloud market," said Ginni Rometty, chairman and chief executive officer of International Business Machines Corp, in a statement Sunday.

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