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IBM On Cloud Acquisition Spree, Announces Nordcloud Takeover
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International Business Machines Corporation (IBM - Free Report) is on an acquisition spree to boost its hybrid cloud business. The tech giant recently announced the takeover of Finland-based cloud-focused start up — Nordcloud.
The acquisition will help IBM gain a larger share of the cloud professional services market. Citing Gartner and IDC projections, IBM noted that cloud professional services market will reach more than $200 billion in revenues by 2024.
IBM did not divulge the financial terms of the deal. The acquisition, subject to customary and regulatory approval, is slated to conclude in the first quarter of 2021.
International Business Machines Corporation Price and Consensus
Nordcloud is headquartered in Helsinki and specializes in cloud deployment along with application development and managed services. It was founded in 2011 and has 10 offices across Europe.
The start up is one of the few cloud services’ providers to have triple certification for Amazon’s (AMZN - Free Report) Amazon Web Services (AWS), Microsoft’s (MSFT - Free Report) Azure and Alphabet’s (GOOGL - Free Report) Google Cloud, added IBM.
The start up has been named as one of the fast-growing European companies in The Financial Times' league table as well as featured as leader in Gartner Magic Quadrant.
IBM’s Cloud Initiative
IBM is betting big on hybrid cloud to turnaround its business. The company considers hybrid cloud to be a $1-trillion dollar prospect. As part of accelerating its hybrid cloud approach, IBM announced the split of its business into two separate companies. The company’s legacy Managed Infrastructure Services business will be separated into a new company by the end of 2021.
The company is also acquiring cloud-focused start-ups to strengthen foothold in the lucrative cloud space.
Nordcloud marks IBM’s second cloud-focused buyout in a span of a week. On Dec 16, the company announced the takeover of Canada-based, Expertus Technologies Inc to boost its end-to-end digital payments offerings. The start up specializes in providing innovative cloud-based electronic payment options to the enterprises in the financial services sector.
Prior to that, IBM announced acquisitions of Instana and TruQua Enterprises, LLC in November 2020. Instana buyout will boost management of cloud-native applications’ performance across hybrid cloud environment. The TruQua buyout will enable IBM customers to implement SAP solutions such as S/4HANA to automate and modernize financial processes such as budgeting and cash flow.
IBM’s biggest cloud-based acquisition till date remains Red Hat. The company was acquired for $34 billion in 2019. The Red Hat acquisition enabled IBM to boost containerized software capabilities and accelerate service engagement.
Red Hat and IBM’s hybrid cloud platform is being utilized by more than 2,600 clients, presently. In third-quarter 2020, revenues from Red Hat climbed 16% on a normalized basis.
Persistent Overhangs
Owing to the COVID-19 crisis-induced macroeconomic weakness, business organizations are scaling back their expenditures. This is likely to affect demand for IBM’s offerings at least in the near term.
Further, increasing expenses on hybrid cloud platform along with rising debt amid extensive restructuring activities as well as intensifying competition in the cloud space are other concerns for this Zacks Rank #4 (Sell) company.
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
IBM On Cloud Acquisition Spree, Announces Nordcloud Takeover
International Business Machines Corporation (IBM - Free Report) is on an acquisition spree to boost its hybrid cloud business. The tech giant recently announced the takeover of Finland-based cloud-focused start up — Nordcloud.
The acquisition will help IBM gain a larger share of the cloud professional services market. Citing Gartner and IDC projections, IBM noted that cloud professional services market will reach more than $200 billion in revenues by 2024.
IBM did not divulge the financial terms of the deal. The acquisition, subject to customary and regulatory approval, is slated to conclude in the first quarter of 2021.
International Business Machines Corporation Price and Consensus
International Business Machines Corporation price-consensus-chart | International Business Machines Corporation Quote
Nordcloud is headquartered in Helsinki and specializes in cloud deployment along with application development and managed services. It was founded in 2011 and has 10 offices across Europe.
The start up is one of the few cloud services’ providers to have triple certification for Amazon’s (AMZN - Free Report) Amazon Web Services (AWS), Microsoft’s (MSFT - Free Report) Azure and Alphabet’s (GOOGL - Free Report) Google Cloud, added IBM.
The start up has been named as one of the fast-growing European companies in The Financial Times' league table as well as featured as leader in Gartner Magic Quadrant.
IBM’s Cloud Initiative
IBM is betting big on hybrid cloud to turnaround its business. The company considers hybrid cloud to be a $1-trillion dollar prospect. As part of accelerating its hybrid cloud approach, IBM announced the split of its business into two separate companies. The company’s legacy Managed Infrastructure Services business will be separated into a new company by the end of 2021.
The company is also acquiring cloud-focused start-ups to strengthen foothold in the lucrative cloud space.
Nordcloud marks IBM’s second cloud-focused buyout in a span of a week. On Dec 16, the company announced the takeover of Canada-based, Expertus Technologies Inc to boost its end-to-end digital payments offerings. The start up specializes in providing innovative cloud-based electronic payment options to the enterprises in the financial services sector.
Prior to that, IBM announced acquisitions of Instana and TruQua Enterprises, LLC in November 2020. Instana buyout will boost management of cloud-native applications’ performance across hybrid cloud environment. The TruQua buyout will enable IBM customers to implement SAP solutions such as S/4HANA to automate and modernize financial processes such as budgeting and cash flow.
IBM’s biggest cloud-based acquisition till date remains Red Hat. The company was acquired for $34 billion in 2019. The Red Hat acquisition enabled IBM to boost containerized software capabilities and accelerate service engagement.
Red Hat and IBM’s hybrid cloud platform is being utilized by more than 2,600 clients, presently. In third-quarter 2020, revenues from Red Hat climbed 16% on a normalized basis.
Persistent Overhangs
Owing to the COVID-19 crisis-induced macroeconomic weakness, business organizations are scaling back their expenditures. This is likely to affect demand for IBM’s offerings at least in the near term.
Further, increasing expenses on hybrid cloud platform along with rising debt amid extensive restructuring activities as well as intensifying competition in the cloud space are other concerns for this Zacks Rank #4 (Sell) company.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>