IBM has made moves to enhance its hybrid cloud strategy through the acquisition of two data integration tools from Germany’s Software AG, with a hefty price tag of €2.13 billion ($2.3 billion).
The deal, paid for entirely in cash, includes ownership of Software AG’s recently acquired data integration platform, StreamSets, as well as their 2007 purchase, WebMethods, which cost over $500 million.
This acquisition is noteworthy as Software AG was also acquired earlier this year by private equity firm Silver Lake in a deal worth $2.4 billion. Silver Lake has since increased their stake in Software AG to 93%, with plans to delist the company from public markets.
For IBM, adding Software AG’s integration platform-as-a-service (IPAAS) toolset complements their existing hybrid cloud strategy. This approach has been reinforced over the years through several significant acquisitions, such as the $34 billion purchase of Red Hat in 2018 and the more recent $4.6 billion deal with Apptio in June.
While cloud computing offers many benefits, there has been a growing push away from vendor lock-in and towards a more hybrid approach. This means utilizing a mix of local infrastructure for security and low-latency needs, while also utilizing one or more public cloud providers for specific tasks when necessary.
The challenge with this approach is managing and processing data that may be stored in various applications across on-prem and multiple private or public clouds. This is where data integration systems become crucial, allowing companies to create pipelines that can aggregate data from different sources, regardless of format or location.
And that’s exactly what IBM is gaining with the addition of StreamSets and WebMethods. These technologies cover all levels of application and data integration, including API management, which is a specific strength of WebMethods.
Data is also essential in the world of AI, and IBM has been increasing its focus on this technology. Earlier this year, the company introduced Watsonx, a data science platform that integrates AI building tools and data management in one platform. This is where IBM’s latest acquisitions will also play a vital role.
“Together with IBM’s Watsonx AI and data platform, as well as its application modernization, data fabric, and IT automation products, StreamSets and WebMethods will help clients unlock the full potential of their applications and data,” said Rob Thomas, IBM’s Senior VP for software and Chief Commercial Officer.
