IBM is buying SoftLayer for an undisclosed amount in a bid to strengthen its position in cloud computing. The acquisition is expected to close following customary closing conditions including regulatory clearances by Q3 of 2013.
While IBM enjoys a dominant position with the enterprises and government in the cloud computing market, its spread among the SMBs is weak when compared to Amazon.com. This acquisition will help IBM build out its private and public cloud-based services for a broader range of clients, including SMBs.
The speed and simplicity of SoftLayer’s public cloud services combined with IBM’s enterprise grade reliability, security and openness will make it easier and faster for SMBs around the world to incorporate cloud computing.
IBM SaaS solutions for Smarter Cities, Smarter Commerce and other applications will be made available via SoftLayer over time, providing line-of-business clients improved time to value and new innovation across an increasingly integrated portfolio of solutions that accelerate business process innovation, provide analytics at the point of impact, and connect collaborative business networks within and across organizations.
Alongside the acquisition, IBM has also announced the formation of a new IBM Cloud Services division which will combine SoftLayer with IBM SmartCloud into a global platform.
IBM will expand SoftLayer cloud offerings to include OpenStack capabilities consistent with its entire SmartCloud portfolio.
It will also support and enrich the SoftLayer cloud-centric partners and ecosystem and its performance capabilities for Big Data and analytics.
The said division will thus provide a broad range of choices to both IBM and SoftLayer clients, ISVs,enterprises, channel partners and technology partners.
“SoftLayer has a strong track record with born-on-the-cloud companies, and our move today with IBM will rapidly expand that footprint globally as well as allow us to go deep into the large enterprise market,” said Lance Crosby, CEO, SoftLayer.
“The compelling opportunity is connecting IBM’s geographic reach, industry expertise and IBM’s SmartCloud breadth with our innovative technology. Together SoftLayer and IBM expand their reach to new clients – both born-on-the-cloud and born-in-the-enterprise,” he added.
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