Earnings Outlook: IBM earnings: What’s the plan for Red Hat?

International Business Machines Corp. has hailed its acquisition of Red Hat as a “game-changer,” but now it’s time for the tech giant to prove itself.

As IBM IBM, +1.06% tries to reduce its reliance on legacy businesses, it’s looking to Red Hat’s hybrid-cloud revenue stream to jolt growth, and investors will be trying to gauge the magnitude and timing of this impact when IBM delivers its Wednesday earnings report. The deal, which had an enterprise value of about $34 billion, closed in early July.

Don’t miss: Analysts bet ‘surge of cloud M&A’ could follow IBM/Red Hat

How much the company is willing to say about the deal on its upcoming conference call remains an open question, however, due to a strange set of circumstances.

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