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June 4, 2013

IBM acquires SoftLayer to accelerate adoption of Cloud computing in the enterprise

IBM has announced a definitive agreement to acquire SoftLayer Technologies, the world's largest privately held cloud computing infrastructure provider.

By Duncan Macrae

The acquisition will strengthen IBM’s leadership position in cloud computing and will help speed business adoption of public and private cloud solutions. Financial terms were not disclosed.

Erich Clementi, senior VP, IBM Global Technology Services, said: "As businesses add public cloud capabilities to their on-premise IT systems, they need enterprise-grade reliability, security and management. To address this opportunity, IBM has built a portfolio of high-value private, public and hybrid cloud offerings, as well as software-as-a-service business solutions.

"With SoftLayer, IBM will accelerate the build-out of our public cloud infrastructure to give clients the broadest choice of cloud offerings to drive business innovation."

IBM is acquiring SoftLayer to make it easier and faster for clients around the world to incorporate cloud computing by marrying the speed and simplicity of SoftLayer’s public cloud services with the enterprise grade reliability, security and openness of the IBM SmartCloud portfolio.

SoftLayer accelerates IBM’s ability to integrate public and private clouds for its clients, with flexibility that provides deployment options that enable a faster, broader transformation for small, medium and large businesses with a range of performance and security models.

Headquartered in Dallas, Texas, SoftLayer serves approximately 21,000 customers with a global cloud infrastructure platform spanning 13 data centres in the US, Asia and Europe. Among its cloud infrastructure services, SoftLayer allows clients to buy enterprise-class cloud services on dedicated or shared servers, offering clients a choice of where to deploy their applications. These clients are expected to benefit as new enterprise grade functionality from IBM emerges for SoftLayer customers, who will then have a unique opportunity to incorporate it as their business grows.

Lance Crosby, CEO of SoftLayer, said: "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.

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"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."

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