IBM/Red Hat – more like history repeating itself?; Salesforce/Tableau-going down the same path?

Tom Paine

A Very Cold Take on IBM, Red Hat and Their Hybrid Cloud Hyperbole— Charles Fitzgerald (@charlesfitz) July 9, 2019

This piece by Charles Fitzgerald on IBM’s acquisition of Red Hat (now closed) is definitely worth the read.

About two years ago I did a quick and dirty analysis on all of IBM’s expenditures on Capex, M&A, and R&D over the past 20 years, compared to its market value. It appeared that Big Blue was frittering away its shrinking but still prodigious cashflow on expenditures that were not enhancing its value, which is the reason for investing.

You might also want to take a look at this by Daniel Newman:

Salesforce’s deal for Tableau smacks of desperation 11, 2019