The merger may lead to some major changes in the vendor landscape
IBM, Intel strike cloud deals
May 04, 2010
IBM and Intel have both bought cloud service providers, underscoring the importance of the fast-growing sector.
IBM has acquired Cast Iron Systems, which it says has completed “thousands of cloud integrations” to clients such as Allianz, NEC, Dow Jones and ShoreTel the deal. Financial terms were not disclosed.
IBM says the deal will expand its business process and integration software portfolio, which grew more than 20% in the first quarter.
“With the addition of Cast Iron Systems to its portfolio, IBM will be able to offer clients a complete platform to integrate cloud applications from providers including Salesforce.com, Amazon, NetSuite and ADP with on-premise applications, such as SAP and JD Edwards,” Big Blue said.
Redmonk analyst Michael Coté told PC World that the deal makes sense for IBM, especially since Cast Iron has rolled out integrations for leading SaaS products, including Salesforce.com and Oracle CRM on Demand.
"For a company like IBM, if there's someone who's already solved that problem, it's an easier thing to buy [them] than do it on your own,” Coté said.
IBM predicts the global cloud computing market to grow at CAGR of 28% from $47 billion in 2008 to $126 billion by 2012.
Separately, Intel Capital has also announced the acquisition of Washington-based Virtustream, which provides strategy, integration and managed services utilizing virtualization technologies, and xStream, the company's secure cloud platform.
The Virtustream deal is one of three US-based investments worth $15 million announced by Intel Capital yesterday.