ibm cloud A New Look at the IBM Softlayer AcquisitionIn an effort to strengthen their position in the market for business-targeted computing services delivered over the internet, IBM has agreed to buy the cloud computing company SoftLayer Technologies. The exact purchase price was not disclosed, but a source who refused to be named (due to his lack of authority to speak publicly about the terms) has put it around $2 billion.

IBM’s acquisition of SoftLayer Technologies is possibly the largest yet under the leadership of Virginia M. Rometty, who became CEO in January last year. Aside from the bolstering of their position in their current market, the acquisition also gives IBM an even heavier presence in the cloud computing market.

One of the key takeaways with the acquisition is that IBM has effectively used it as a boost, because they now have an established footprint in the public cloud arena, and they don’t have to start everything from scratch, unlike the current market leaders AWS, Google, and Rackspace. With Softlayer’s cloud infrastructure platform, IBM now effectively has 21,000 customers in the cloud, which automatically gives them scale and relevance.

As far as the cloud is concerned, IBM’s acquisition of Softlayer isn’t really a gamechanger, and most likely won’t affect the industry much. What it does is give IBM the opening it needs to become a gamechanger. It’s not enough to turn IBM into a cloud leader, at least not directly, but it gives IBM more credibility that can accumulate once the tech giant acquires even more companies.

As it stands right now, SoftLayer provides IBM a defensive and offensive advantage. For the latter, they’ll finally have an increased market share that should put them on an almost equal footing with Rackspace, Google, AWS, and other cloud players. For the former, the acquisition gives IBM a migration path from traditional IT infrastructure space into the public cloud.

Tagged with:
Hottest IT Skills in 2013 – Cloud, Mobile and BI
In 2012, more than 1.7 million jobs in the field of cloud computing remained unoccupied, according to analysts firm IDC. READ MORE
How Cloud Computing Influences Digital Marketing
Cloud marketing has the ability to drastically change the ways in which they reach and engage their audience, particularly with regard to distributing and storing mission-critical data. READ MORE
Gartner: BYOD to Take Center Stage For Mobile App Use by 2017
More and more companies encourage their employees to work on their devices, thus reducing the cost of computer equipment, but also increase the cost to maintain licenses and safety. READ MORE
Maturity in the Cloud: Start Thinking Like a Grown-Up
Despite the inclination to wait until all of the cloud’s kinks have been worked out, holding off on cloud initiatives until the industry matures won’t guarantee success. READ MORE
PwC: Cloud, SaaS and Mobile Are Changing Software Industry
The software industry is undergoing major changes by trends such as cloud, SaaS, mobile technology and the “consumerization of IT”. READ MORE
10 Cloud Computing Game Changers
Here are the ten most influential cloud computing companies, and the reason why. READ MORE