World news – The IBM acquisition targets the hybrid cloud consulting market

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IBM acquired five companies in just three months to build its hybrid cloud consulting business. Some of them specialize in providing managed cloud services for IBM competitors.

The most recent acquisition is Taos, a 30 year old IT provider that is now focused on providing cloud-based professional and managed services concentrated. The company helps large IT organizations in the financial services, healthcare, retail, and transportation sectors migrate data center workloads to multiple clouds. It has partnerships with a number of IBM competitors including AWS, Google Cloud, and Microsoft Azure. The company also offers users a range of platform engineering and hybrid cloud managed services.

Earlier this month, IBM acquired 7Summits, an independent consultancy specializing in Salesforce and hybrid cloud services. At the time of the acquisition, IBM employees said the Milwaukee-based company would play a role in helping corporate users with a variety of digital transformation projects, including hybrid cloud and AI technologies. 7Summits will become part of the IBM Global Business Services unit.

IBM recently announced that it will « significantly » expand its hiring, training and certification over the next three years to support the growth of its Salesforce-related businesses such as Tableau, Mulesoft and Vlocity At the end of December, IBM acquired Nordcloud, a Finland-based provider of public cloud services with offices in 10 European countries. The company also specializes in helping larger IT shops carry out their digital transformation projects. Like 7Summits and Taos, Nordcloud is a certified partner who is certified to work with AWS, Google Cloud Platform and Microsoft Azure. The transaction is expected to close by the end of the first quarter of this year.

Fernando Herrera, chairman of Nordcloud, said in a statement that the main value of the deal is the complementary approach that IBM has compared to its hybrid cloud strategy Nordcloud is pursuing to help users « migrate, manage and generally modernize » their hybrid cloud deployments.

Also in December, IBM acquired Expertus Technologies, which IBM believes will expand its portfolio into a more competitive cloud based digital payments provider.

In November, IBM acquired TruQua, a SAP partner focused on financial and analytics offerings that enable companies to move from on-premise systems to cloud functions such as cash flow, budgeting and consolidation.

David Sun, director of corporate business development at IBM Services Group, believes the strength of the recent acquisition is What they offer lies not just in the technical offerings, but also in the human touch they offer in their respective geographic locations.

« I am one who believes in technology that is spread around the world, » said Sun. . « But when it comes to services, everything is very local. You still need to consider the national languages ​​and know the different compliance regulations for each country. This is what guides our strategy in this market over the long term. »

The Enterprise Strategy Group, a research firm, recently reported that public cloud infrastructure adoption nearly doubled in five years, from 42% or companies using IaaS in 2017 to 78% in 2021. Nearly half that Company stated that ESG has a cloud. first strategy.

Both IDC and Gartner predict that the cloud-managed and professional services market will exceed $ 200 billion by 2024. Analysts see the acquisitions as a step in the right direction. The deals also make sense for IBM, as its main competitors are pursuing similar strategies and most data centers require multi-vendor cloud support, analysts said.

« These acquisitions clearly show the goals IBM is pursuing for hybrid cloud support « said Judith Hurwitz, president of Hurwitz & Associates, an IT consulting, research and analyst firm. « They want to build a variety of cloud services on every major cloud platform of their corporate users. These acquisitions are designed to give them the additional expertise to support the transport of workloads across multiple clouds. »

The search for Strategic acquisitions to strengthen cloud services are necessary, but hardly a new approach for IBM. Big Blue has historically aggressively acquired smaller service companies to expand the reach of its in-house service companies that can offer vertical market insights in multiple geographic locations.

« Acquiring expertise in AWS and Microsoft [Azure] makes it easier for IBM Moving cloud users to multiple clouds, « said Frank Dzubeck, president of Communications Network Architects, Inc. » Sam Palmisano [former IBM chairman] did this years ago when they bought PricewaterhouseCoopers and started doing business with warm bodies all over It’s a sensible approach. « 

All five acquisitions will be part of the IBM Global Business Services unit and will play a key role in IBM CEO Arvind Krishna’s long-term strategy of providing cognitive cloud-enabled services with AI and to create hybrid cloud technologies, Sun said.

This could also lead to more synergies between the IB M Global Business Unit and NewCo, the temporary name given to the company to be created when IBM outsources the managed infrastructure portion of its Global Technology Services business later this year. NewCo will provide hosting, project services, infrastructure modernization, and multi-cloud management and migrations.

« We believe the two entities can continue to grow together, » said Sun. « We will still look for ways in which they can support each other. Many customers will still rely on infrastructure services. From a collaboration perspective, we will always do that. »

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