ginni rometty and jim whitehurst we appreciate your time today.s a traditional deal that this is something that is a game changer for ibm talk to us about why this is the right move and why you're making this deal. >> this is all about for us -- i should say good morning. for us it's all about resetting the cloud landscape. and this is to create the number one company that will be the number one hybrid cloud provider and if you look at this with our clients, right now if everyone moving to the cloud, 20% though i call that chapter one, they've already only moved 20% of their workloads. chapter two is the next. that's to move the next 80%. that's what this is about. but to move that 80%, they are going to need what this combination brings them. and based on the hundreds of notes i know jim and i have both gotten, clients see this very clearly. chapter 2 is about hybrid cloud. this is how they move the remaining 80% of their work to the cloud. you have to be hybrid. you have to be able to handle multiple clouds. you have to be open technologies you

it starts on round 110, goes into rosalind, onhe to whitehurst free way and into the district. runners will go around the smithsonian capital before heading into the commonwealth of virginia. this hpening as the memorial bridge is also shut down for separate reasons because of repa work going on all weekend. if you have to go out and about from virginia into the district, plan carefully. >> a lot of things to keep in mind. so with a surging murde rate this morning closure is in one case. a d.c. police made a quick arrest in the most cent killing. walter bailey was shot to death northeas police now have charged rodney canard with that murder. detectives have not revealed a motive for bailey's shooting. bailey is the eighth person to be shot in five shootings over two weeks along the benning road corridor. one of t shooting victims was a nine-year-old girl. d.c. police have increased patrols in the area. >>> a certain type of lock could make your home a death tr. that's what fire investigators say happened to a fort washington woman killed after flames ravaged her ho. the fire st

. >> that's jim whitehurst of ibm. seniore let's bring in software and i.t. analysis for intelligence. die when a company wants to diversification. it's tough. they have to pay for it. dial?is really move the red hat connection can be stronger with ibm? >> ibm can really use something the this point. they haven't been able to grow time.long period of has a very good software portfolio. ibm can scale it up. can also help ibm services a legacy enterprise, to differentoads clouds. in both software and services, it can help ibm. >> does this mean ibm can win in andrld where aws, amazon microsoft are taking so much scale and part of the market? they can find a way to slip in because they offer in between mode? think ibm becomes relevant again in technology. it is something now they can offer to their clients and say, if you want a private cloud, we can -- this.y one offering >> no. that's not draw. look atpens is, if you the spending in general, bulk of the tech spending is with legacy companies. they have to move slowly thanks to the cloud. likecannot just move n

now, jim whitehurst with his new partner, ginni rometty. jim, let me start with you.u have had a relationship with ibm for a good long time, but why is red hat worth more in the terms of ibm than on its own? why is red hat that are off? have been working with ibm for many years and over the course of the entire year we started to do more together. more work being done together, speaking i started more seriously back in april and it has been something that has continued to evolve and it became a natural next step. in terms of why we see so much value for red hat, we see tremendous opportunity for open source enterprises and as the leader there we see a large market in front of us. what we have lacked is scale when we go to market. we have lacked the depth of customer relationships as we are a newer player coming up. onlacked industry expertise what we needed to meet our full potential. ibm brings all of that. together we can dramatically accelerate the red hat business, what we do today, together being able to offer you the offerings that continue to grow the ibm busin

that they may have the opportunity given at least how long the conversations between rometty and whitehurstent on. we'll see. don't look for an over bid here. as for the logic itself from a strategic standpoint, well, ibm, listen, it is going to help our cash flow and revenue growth their cloud strategy was currently based was not enough from the current environment they had a small percentage overall of what is an enormous market it is one we talk about so often with three names aws, google, and azure from microsoft. they control the public cloud. they're the hyper scale operators building all these data center over and over again all over the world to help support computing power that's needed many corporations as oppose to small businesses may use public cloud for all things many corporations choose to keep a lot of their information, data and their ability to analyze it and work with it in-house. and so the hope here is red hat which has toperating system on all cloud that's been built. moving data from public to back to the corporate owned data will be traattractive and that ibm's enor

of the day, i ibm buying red hat we'll be talking about that with ceos first, ginni rometty, jim whitehurstare in cash it's a 63 a share right now. it will open up $6 what it means, why they're buying into this, what it means for the hybrid cloud and how they keep jim whitehust and his team around. they will stick around they will report to gin ginni rometty. plus jim hutchins is our guest he's a tech expert so we'll give him a lot to start with. >> i'll be with you at the top of the hour as well with the markets. coming up next, german chancellor angela merkel suffering a political blow in a weekend election now she's set possibly to give up leadership of her party why investors need to pay attention to this story when "worldwide exchange" returns rebekkah: opioids has taken everything and everyone i've ever loved away from me. everything. i blew my ankle out and i got prescribed pain pills by my doctor. of the hour as well with the i just wish i would've had a warning. from capital one.nd i switched to the spark cash card i earn unlimited 2% cash back on everything i buy. and last year, i

ginni rometty, chairman and president of ibm and jim whitehurst, president and ceo of red hat. wish you the best of luck. >> thank you the meeting of the executive finance committee is now in session. and... adjourned. business loans for eligible card members up to fifty thousand dollars, decided in as little as 60 seconds. the powerful backing of american express. don't do business without it. you're in the business of helping people. we're in the business of helping you. business loans for eligible card members up to fifty thousand dollars, decided in as little as 60 seconds. the powerful backing of american express. don't do business without it. >>> well, this has been a brutal earnings system. the stock might go down because it had the misfortune of reporting on a bad day columbia sportswear, last thursday this company reported a monster top and bottom line and management raised their full year forecast substantially for the third straight quarter in a row. it sold off the next day pulling back 2% because friday was such an ugly session. the stock came roaring back vaulting

the race is on route 110, over the key brge, on to the whitehurst freeway and into the district.ill goro adun t ithsonian castle before heading back into the commonwealth of virginia. all of thisap is hning as the memorial bridge is shut down for repair work all week end so be careful on the roads. >>> tomorrow desks will be empty at ben foulois performing arts schoen. st plan to walk out to r otest mold found in th building. they say the school isn'toing enough to help. school officials say pipes have been wrapped in new installation >>> don't mind hecalendar. clay anderson, it seems like summer is lingering bit longer. >> we're hanging on the 80 degree temperaturesan butng on the low clouds as well. those that are running down by the tidal basin, a flood advisory across the basin until 10:00 p.m. tonight. visibility problem across the area. temperatures, though, if you love summer you'll enjoy this week, it continues to be in the 80s and david we will cool down but not until we reach the weekend. temperatures in the 60s fyou. >>> another weekfa until , clay anderson. thanks. mo