IBM, the historical Computer and IT consulting company has signed up a deal of acquisition with the largest cloud integration company Cast Iron. This deal aims to provide more advantages in cloud computing. This deal increases the workability and potentiality of the company according to official’s verse. IBM is looking forward for the more dynamic and faster service in cloud computing and thus they want to expand their market with more acquisition portfolios. IBM hasn’t disclosed any details of the financial exchange; they just announced the dealing process and ensure to publish the monetary terms very soon.
IBM is a multinational company who manufactures Computer hardware, software and provides consultancy and IT management service to the users. After establishment in 1896, the company concentrated on expanding business in computer business. It first started as a hardware manufacturer and then at different times IBM spread its wings in several arenas. In the last 11 years IBM acquired 90 companies which are mainly several computer service provider companies. The concept of cloud computing was first introduced by IBM itself. And with the successful business interpretation of cloud computing, IBM now wants more expansion of its user market along with providing more extensive facilities. In the $109 billion deal IBM has acquired Cast Iron to increase the market share in cloud computing service. The service of Cast iron provided the best solution for integrating cloud data and network like applications. IBM expects the rapid growth of cloud computing market with about 28% annual increase, which they project as a $126 billion market by 2012. This acquisition dictates the IBM’s gradual expansion in software business which helps them to provide better service and product to the users. IBM’s software business increased 20% in the last few months.
“The combination of big business firms will come with a change that’s for sure.” said Craig Hayman, general manager for IBM WebSphere, in a statement. “IBM acquisition may come across with a change in costing”, predicts a business consulting firm. The business report states that IBM may widen its region, space and area of service. In some extent more additional services and technologies will be involved in near future. Above all cloud computing can get a safe shelter along with a gradual expansion under the umbrella of IBM. The business report includes the vendors’ opportunity to grasp more cloud data with the more sophisticated technology, which could be enhanced by this acquisition.
OmniConnect software of Cast Iron gives the opportunity to integrate various applications of public and private data clouds, which can be an extensive product for the IBM. IBM physically wants to appear as the biggest provider of this service. In fact IBM is the biggest computer company of the world with its four hundred thousand employees and second highest capital in the market. This acquisition can open a new door of cloud computing and increase more facilities with new sophisticated technologies and innovative management ideas.