Daily Archives: July 9, 2019

IBM Closes Landmark Acquisition of Red Hat for $34 Billion; Defines Open, Hybrid Cloud Future

–  Acquisition positions IBM as the leading hybrid cloud provider and accelerates IBM’s high-value business model, extending Red Hat’s open source innovation to a broader range of clients

–  IBM preserves Red Hat’s independence and neutrality; Red Hat will strengthen its existing partnerships to give customers freedom, choice and flexibility

–  Red Hat’s unwavering commitment to open source remains unchanged

–  Together, IBM and Red Hat will deliver next-generation hybrid multicloud platform

ARMONK, New York  and  RALEIGH, North Carolina, July 9, 2019 /PRNewswire/ — IBM (NYSE: IBM) and Red Hat announced today that they have closed the transaction under which IBM acquired all of the issued and outstanding common shares of Red Hat for $190.00 per share in cash, representing a total equity value of approximately $34 billion.

The acquisition redefines the cloud market for business. Red Hat’s open hybrid cloud technologies are now paired with the unmatched scale and depth of IBM’s innovation and industry expertise, and sales leadership in more than 175 countries. Together, IBM and Red Hat will accelerate innovation by offering a next-generation hybrid multicloud platform. Based on open source technologies, such as Linux and Kubernetes, the platform will allow businesses to securely deploy, run and manage data and applications on-premises and on private and multiple public clouds.

“Businesses are starting the next chapter of their digital reinventions, modernizing infrastructure and moving mission-critical workloads across private clouds and multiple clouds from multiple vendors,” said Ginni Rometty, IBM chairman, president and CEO. “They need open, flexible technology to manage these hybrid multicloud environments. And they need partners they can trust to manage and secure these systems. IBM and Red Hat are uniquely suited to meet these needs. As the leading hybrid cloud provider, we will help clients forge the technology foundations of their business for decades to come.”

“When we talk to customers, their challenges are clear: They need to move faster and differentiate through technology. They want to build more collaborative cultures, and they need solutions that give them the flexibility to build and deploy any app or workload, anywhere,” said Jim Whitehurst, president and CEO, Red Hat. “We think open source has become the de facto standard in technology because it enables these solutions. Joining forces with IBM gives Red Hat the opportunity to bring more open source innovation to an even broader range of organizations and will enable us to scale to meet the need for hybrid cloud solutions that deliver true choice and agility.”

Red Hat will continue to be led by Jim Whitehurst and its current management team. Whitehurst is joining IBM’s senior management team, reporting to Ginni Rometty. IBM will maintain Red Hat’s headquarters in Raleigh, North Carolina, its facilities, brands and practices. Red Hat will operate as a distinct unit within IBM and will be reported as part of IBM’s Cloud and Cognitive Software segment.

Both companies have already built leading enterprise cloud businesses with consistent strong revenue growth by helping customers transition their business models to the cloud.

IBM’s cloud revenue has grown from 4 percent of total revenue in 2013 to 25 percent today. This growth comes through a comprehensive range of as-a-service offerings and software, services and hardware that enable IBM to advise, build, move and manage cloud solutions across public, private and on-premises environments for customers. IBM cloud revenue for the 12-month period through the first quarter of this year grew to over $19 billion. The Red Hat acquisition is expected to contribute approximately two points of compound annual revenue growth to IBM over a five-year period.

Red Hat’s fiscal year 2019 revenue was $3.4 billion, up 15 percent year-over-year. Fiscal first quarter 2020 revenue, reported in June, was $934 million, up 15 percent year-over-year. In that quarter, subscription revenue was up 15 percent year-over-year, including revenue from application development-related and other emerging technology offerings up 24 percent year-over-year. Services revenue also grew 17 percent.

The Hybrid Cloud Opportunity

Digital reinvention is at an inflection point as businesses enter the next chapter of their cloud journey. Most enterprises today are approximately 20 percent into their transition to the cloud. In this first chapter of their cloud journey, businesses made great strides in reducing costs, boosting productivity and revitalizing their customer-facing innovation programs. Chapter two, however, is about shifting mission-critical workloads to the cloud and optimizing everything from supply chains to core banking systems.

To succeed in the next chapter of the cloud, businesses need to manage their entire IT infrastructure, on and off-premises and across different clouds – private and public – in a way that is simple, consistent and integrated. Businesses are seeking one common environment they can build once and deploy in any one of the appropriate footprints to be faster and more agile. IBM’s offerings have evolved to reflect new customer needs and drive greater growth. The acquisition of Red Hat further strengthens IBM as the leader in hybrid cloud for the enterprise.

“As organizations seek to increase their pace of innovation to stay competitive, they are looking to open source and a distributed cloud environment to enable a new wave of digital innovation that wasn’t possible before. Over the next five years, IDC expects enterprises to invest heavily in their journeys to the cloud, and innovation on it. A large and increasing portion of this investment will be on open hybrid and multicloud environments that enable them to move apps, data and workloads across different environments,” said Frank Gens, Senior Vice President and Chief Analyst, IDC. “With the acquisition of Red Hat, and IBM’s commitment to Red Hat’s independence, IBM is well positioned to help enterprises differentiate themselves in their industry by capitalizing on open source in this emerging hybrid and multicloud world.”

The collective ability of IBM and Red Hat to unlock the true value of hybrid cloud for businesses is already resonating among customers moving to the next chapter of digital reinvention.

Delta is constantly exploring current and emerging technology as we transform the air travel experience,” said Ed Bastian, CEO, Delta. “We’ve been working with both IBM and Red Hat for years to deliver on that goal, and as they together build the next generation IT company, they will be an essential part of our digital transformation.”

“As a long-standing partner of Red Hat and IBM, we look forward to capabilities that these two companies will bring together,” said Michael Poser, Managing Director and Chief Information Officer, Enterprise Technology & Services, Morgan Stanley. “We know first-hand how important and impactful cloud technology contributes to unlocking business value.”

IBM Reinforces Commitment to Open Source and Red Hat Neutrality

IBM and Red Hat have deep open source values and experience. The two companies have worked together for more than 20 years to make open source the default choice for modern IT solutions. This includes the importance of open governance and helping open source projects and communities flourish through continued contribution.

With Red Hat, IBM has acquired one of the most important software companies in the IT industry. Red Hat’s pioneering business model helped bring open source – including technologies like Linux, Kubernetes, Ansible, Java, Ceph and many more – into the mainstream for enterprises. Today, Linux is the most used platform for development. Red Hat Enterprise Linux alone is expected to contribute to more than $10 trillion worth of global business revenues in 2019. By 2023, an additional 640,000 people are expected to work in Red Hat-related jobs.

IBM has committed to scaling and accelerating open source and hybrid cloud for businesses across industries, as well as preserving the independence and neutrality of Red Hat’s open source heritage. This includes its open source community leadership, contributions and development model; product portfolio, services, and go-to-market strategy; robust developer and partner ecosystems, and unique culture.

Red Hat’s mission and unwavering commitment to open source will remain unchanged, and Red Hat will continue to offer the choice and flexibility inherent to open source and hybrid IT environments. Red Hat also will continue to build and expand its partnerships, including those with major cloud providers, such as Amazon Web Services, Microsoft Azure, Google Cloud and Alibaba.

IBM and Red Hat also share a strong commitment to social responsibility and a sense of purpose for applying technology and expertise to help address some of the world’s most significant societal challenges. Together, the two companies have committed to expanding this longstanding commitment through new joint initiatives, addressing education and skills, civic and societal needs and Science, Technology, Engineering, and Math (STEM) workforce development. For more information visit: https://ibm.com/blogs/corporate-social-responsibility/2019/07/be-open-and-change-the-world/.

For more information on today’s news, visit: https://newsroom.ibm.com/ and https://www.ibm.com/redhat.

About IBM
For more information about IBM, visit https://www.ibm.com.

About Red Hat, Inc.
Red Hat is the world’s leading provider of enterprise open source software solutions, using a community-powered approach to deliver reliable and high-performing Linux, hybrid cloud, container, and Kubernetes technologies. Red Hat helps customers integrate new and existing IT applications, develop cloud-native applications, standardize on our industry-leading operating system, and automate, secure, and manage complex environments. Award-winning support, training, and consulting services make Red Hat a trusted adviser to the Fortune 500. As a strategic partner to cloud providers, system integrators, application vendors, customers, and open source communities, Red Hat can help organizations prepare for the digital future.

Contacts
IBM  
Media Contact:  
Vineeta Durani
+1 347-982-4803
vineeta.durani@us.ibm.com
or
Investor Relations:
Patricia Murphy
+1 914-499-5800
pamurphy@us.ibm.com

Red Hat, Inc.  
Media Contact:  
Stephanie Wonderlick
+1 571-421-8169
swonderl@redhat.com

What Is the Smart I-V Curve Diagnosis 3.0?

SHANGHAI, July 9, 2019 /PRNewswire/ — In 2019, Huawei launched the AI Boost Smart I-V Curve Diagnosis 3.0, integrating Artificial Intelligence (AI) technology in the field of solar operation and maintenance (O&M) for the first time. The solution uses smart photovoltaic (PV) inverters to scan PV strings to obtain the relationship (I-V curve) between the output voltage and output current. The smart PV management system performs big data-based analysis on the I-V curve of PV modules, applies AI smart diagnosis algorithms, identifies faulty strings accurately, and outputs a diagnosis report. Through AI self-learning, the solution is accumulating I-V experience and optimizing fault models, transferring O&M of solar PV into the AI era.

What Problems Can Smart I-V Curve Diagnosis 3.0 Solve?

It is fully proved that PV module faults are the key factor that affecting the energy yield of PV plants. PV module faults at early, middle, and late stages differ greatly. Manual inspection and traditional supervisory control and data acquisition (SCADA) cannot accurately locate the root cause of the faults. Traditional I-V detection is offline detection that requires site visits with devices carried. A 100 Mega Watt (MW) PV plant, for example, has tens of thousands PV modules and covers an area equivalent to 300 football fields. As a result, not all PV modules can be scanned. Moreover, generating reports manually is error-prone and time-consuming. Increasing PV application scenarios, complex terrain, as well as the advent of new types of PV modules such as bifacial PV modules all impede manual detection and raise the costs.

What problems can Smart I-V Curve Diagnosis Solve

Huawei Smart I-V Curve Diagnosis 3.0 changes the traditional manual sampling detection. The system performs full detection on all PV modules. It takes only 15 minutes to scan a 100 MW PV plant and automatically generate a detection report covering 14 types of faults. The solution applies to a wide variety of PV scenarios, such as large-scale ground, distributed, and residential PV plants. The detection is completed online, sparing the personnel of site visits. This greatly improves the O&M efficiency of PV plants in the entire life cycle and reduces the O&M cost.

Compared with monofacial PV modules, bifacial ones, affected by weather and ground conditions, suffer the mismatch effect more. Due to the uneven irradiation on the rear side of bifacial PV modules and ground reflected diffuse, the accuracy requirement of the I-V detection is higher. Besides, the incurred current mismatch should not be simply considered as faults. Through AI self-learning, Smart I-V Diagnosis 3.0 further adapts with bifacial PV modules, improves the recognition accuracy of bifacial modules’ model, and accurately identifies mismatches caused by shading and PV module faults.

Application of Smart I-V Curve Diagnosis

Recognized and highly appraised by customers worldwide, Smart I-V Diagnosis has been deployed globally in large-scale ground, distributed industrial and commercial rooftop, residential rooftop, mountain, floating, solar-agricultural, and solar-fishery PV plants with a scale of over 5 GW by now. It is certified onsite by TÜV Rheinland that Smart I-V Diagnosis has the data precision up to 0.5%. A 100 MW smart PV plant in Golmud, Qinghai witnessed the 15-minute detection for all PV strings with 100% accuracy.

Smart I-V Curve Diagnosis certified by TUV

In an undulating ground PV plant in Malaysia, Smart I-V Curve Diagnosis was used to scan 9,496 PV strings with 1,149 ones detected as faulty. The fault rate was 12.1%. Based on the Smart I-V Curve Diagnosis report, O&M personnel had a detailed understanding of the health status of each PV array, which facilitated targeted site maintenance. If all the faults are fixed, the power generation of this plant will increase by more than 1.5%.

Smart I-V Curve Diagnosis case study in Malaysia

AI technology has promoted industrial upgrading and transformation. The renewable energy industry has ushered in a rapid development period of digital transformation. In the field of PV plant O&M, Huawei will take advantage of its innovative technology and extensive experience to greatly improve O&M efficiency, reduce O&M costs, and improve the operating efficiency of the entire life cycle of PV plants.

About Huawei:

Huawei is a leading global ICT and network energy solutions provider, currently providing network energy products and solutions in over 170 countries, serving more than three billion people around the world. Huawei innovatively integrates digital information technologies such as AI, IoT, big data, and cloud computing, with PV technology, to promote industry-leading smart PV solutions for utility-scale, commercial and residential scenarios. Based on reports released by global consultancy IHS Markit, Huawei was ranked No.1 globally in inverter shipment for four consecutive years, from 2015 to 2018. For more information, please visit: solar.huawei.com.

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Finmechanics and Andile Solutions to help African banks leapfrog through technology

SINGAPORE and JOHANNESBURG, July 9, 2019 /PRNewswire/ — Finmechanics, the Singapore-headquartered provider of the new generation platform for banks’ treasury and risk management, FM Converge, and Andile Solutions, leading provider of IT solutions and services in South Africa and across the region, today announced that they will jointly deliver a derivatives solution based on FM Converge to a large regional bank keen to enhance their pricing, analytics and risk management.

This is a first step in Sub-Saharan Africa for Finmechanics, who recently opened branches in Dubai, Sydney, London and Amsterdam. “We are thrilled to provide the African continent with the highest standards of precision, agility and control in Pricing and Risk management,” said Anindya Sarkar, CEO of Finmechanics. “Our products will enable regional institutions to digitise their trading and processing activities and build robust foundations for growth, based on the most modern technology,” he added.

Finmechanics and Andile earlier entered a Co-determination Agreement, by which the partners agreed to jointly build turnkey solutions designed for the African continent, by combining the modern, microservice-based architecture of Finmechanics with Andile’s deep knowledge of the local market and experience as a solution provider. “We’ve found Finmechanics to be the platform of the future for trading, processing, valuations and risk management,” said Andries Brink, CEO of Andile Solutions. “Together with Andile’s personalised service and integration capabilities, we will equip regional banks to leapfrog through technology, and tailor solutions to their very needs,” said Brink.

To learn more about Andile products and services for the financial industry, please visit https://www.andile.net

To learn more about Finmechanics technology, integration and advisory services, please visit https://www.finmechanics.com.

About Finmechanics

Headquartered in Singapore with offices in 6 countries and clients around the world, Finmechanics is a challenger provider of systems for trading, treasury, processing, risk management and regulatory compliance. The Finmechanics Microservices inspired approach help firms to simplify and transform their organisation, defining new standards of agility and cost efficiency and be fully cloud ready. Finmechanics also provides Artificial Intelligence to leading banks.

About Andile Solutions

Headquartered in Rosebank, Johannesburg, Andile has clients in 7 African countries. Having had its roots in the Capital Markets Professional Services industry, Andile is progressing by offering innovative cloud technology platforms and related services to Challenger as well as regional banks on the continent.

Contact:
Philippe Carrel
philippe.carrel@finmechanics.com
+44-7517358123