IBM Adds Nordcloud to Hybrid Cloud Buying Spree
Finnish firm becomes fourth cloud-focused vendor to be acquired by Big Blue in past two months
IBM continues to push ahead with its hybrid cloud ambitions with the help of acquisitions, with the latest being Finland-based Nordcloud, which also has close working relationships with public cloud titans Amazon Web Services (AWS), Microsoft Azure, and Google Cloud.
The Lowdown: No financial details were released about the deal, which was announced this week and is expected to close in the first quarter of 2021.
The Details: IBM has put a sharp focus on the growing hybrid cloud space, which it sees as a $1 trillion opportunity. It was a driving force behind Big Blue’s $34 billion purchase last year of software maker Red Hat and the reason for a series of smaller acquisitions in recent months, including Expertus Technologies – which offers cloud solutions for the financial services industry – earlier this month, and SAP consultancy TruQua and application performance monitoring vendor Instana, both in November.
Nordcloud brings experience in helping organizations with their cloud implementation and application transformation efforts. The 10-year-old company also offers managed services. After the deal closes, Nordcloud will become an IBM company.
The Impact: Hybrid cloud and multicloud adoption by enterprises and SMBs is growing rapidly, a trend that has accelerated during the COVID-19 pandemic. In its annual cloud report, Flexera said that 87% of organizations surveyed have a hybrid cloud strategy in place and 93% were adopting a multicloud approach.
Background: Leveraging the Red Hat acquisition, IBM has built an open hybrid cloud platform based on Red Hat’s OpenShift platform and last year launched its Cloud Paks effort, offering modular solutions that use containerized software running on OpenShift. IBM also is planning to spin off its massive managed infrastructure service business to enable it to focus more on its hybrid cloud and artificial intelligence (AI) work.
The Buzz: “Our clients are increasingly taking a more holistic approach to application modernization that allows them to operate across a traditional IT environment, private cloud, and public clouds,” said John Granger, senior vice president of cloud application innovation and COO for IBM Global Business Services. “IBM’s acquisition of Nordcloud adds the kind of deep expertise that will drive our clients’ digital transformations, as well as support the further adoption of IBM’s hybrid cloud platform. Nordcloud’s cloud-native tools, methodologies, and talent send a strong signal that IBM is committed to deliver our clients’ successful journey to cloud.”
“IBM’s hybrid cloud approach is very complementary with our cloud-native approach to helping clients migrate, manage, and modernize in the cloud,” said Fernando Herrera, founder and chairman of Nordcloud. “As an experienced partner in today’s cloud ecosystems, we work with all of the public cloud providers for the good of our clients throughout Europe. I am very excited to embrace IBM’s open innovation mindset and help grow its global footprint.”
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