But this is the first ATO since Red Hat became a wholly owned entity of IBM, and Big Blue has long been a major presence in Raleigh too. The grant's composition also reflects IBM's increasing focus on its open-source and cloud offerings. In August, IBM debuted Cloud Paks, containerized software optimized to run on Red Hat's implementation of the open source container application platform OpenShift, and meant to help enterprises move to the cloud. A few weeks later in September, CEO Ginni Rometty clarified IBM's strategy in the cloud, saying the company was betting on a hybrid cloud model that would let it partner with third-party clouds operated by Amazon and Microsoft while offering IBM services on corporate customers' cloud-based servers.