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IBM Boosts Hybrid Cloud & AI Portfolio With Strategic Buyout
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International Business Machines Corporation (IBM - Free Report) recently announced that it has signed a definitive agreement to acquire Software AG’s iPaaS (integration platform-as-a-service) businesses, StreamSets and webMethods. StreamSets and webMethods are industry leaders in data integration, API management and application integration. The buyout is anticipated to be concluded by the second quarter of 2024 through a €2.13 billion cash transaction.
Software AG’s enterprise technology platforms boast a healthy revenue profile and currently possess a client base of around 1,500 worldwide. IBM has a decades-old business relationship with Software AG. Through this buyout, IBM is likely to derive synergy benefits with its current portfolio, which includes watsonx AI, IBM Consulting and other IT automation products.
webMethods specializes in advanced API management and integration tools and operates seamlessly across on-premises and cloud environments. It effectively facilitates B2B integration, manages file transfer and provides API gateway functions. On the other hand, StreamSets is a DataOps and data ingestion platform with a cloud-based architecture. It ensures seamless access to diverse data sources and empowers organizations with smart data pipeline designs and real-time data integration.
By integrating these capabilities, IBM aims to create a comprehensive and advanced application and data integration platform within the industry. This integration will notably enhance watsonx’s data ingestion capabilities and also enrich customers with additional integration and API management features.
The combination of IBM’s product suite with StreamSets and webMethods will drive innovation and accelerate digital transformation by empowering enterprises to extract maximum potential from applications and data. Additionally, the merger with IBM will give StreamSets and webMethods substantial exposure on a global scale, enhancing their brand visibility and commercial prospects.
Research suggests that the global integration software market is expected to grow 16.1% each year and reach a value of around $18 billion by 2027. The recent venture highlights IBM’s strategic alignment with this positive trend, seeking to capitalize on the rising integration software market by strengthening its hybrid cloud and AI product portfolio.
IBM is betting big on the watsonx platform, which is likely to be the core technology platform for its AI capabilities. watsonx delivers the value of foundational models to the enterprise, enabling them to be more productive. This enterprise-ready AI and data platform comprises three products to help organizations accelerate and scale AI: the watsonx.ai studio for new foundation models, generative AI and machine learning, the watsonx.data fit-for-purpose data store, built on an open lake house architecture, and the watsonx.governance toolkit to help enable AI workflows to be built with responsibility and transparency.
The stock has gained 15.2% over the past year compared with the industry’s growth of 11.5%.
MODN provides revenue management solutions for life sciences and technology companies, including applications for configuration, price, quote, rebate management and regulatory compliance. In the last reported quarter, it delivered an earnings surprise of 3.33%.
Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build cloud architecture and enhance their cloud experience. Arista delivered a trailing four-quarter average earnings surprise of 12%.
ANET holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. Arista is gaining market traction in 200 and 400-gigabit high-performance switching products and is well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.
NVIDIA Corporation (NVDA - Free Report) , currently carrying a Zacks Rank #2, delivered a trailing four-quarter average earnings surprise of 18.99%. In the last reported quarter, it delivered an earnings surprise of 19.64%.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
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IBM Boosts Hybrid Cloud & AI Portfolio With Strategic Buyout
International Business Machines Corporation (IBM - Free Report) recently announced that it has signed a definitive agreement to acquire Software AG’s iPaaS (integration platform-as-a-service) businesses, StreamSets and webMethods. StreamSets and webMethods are industry leaders in data integration, API management and application integration. The buyout is anticipated to be concluded by the second quarter of 2024 through a €2.13 billion cash transaction.
Software AG’s enterprise technology platforms boast a healthy revenue profile and currently possess a client base of around 1,500 worldwide. IBM has a decades-old business relationship with Software AG. Through this buyout, IBM is likely to derive synergy benefits with its current portfolio, which includes watsonx AI, IBM Consulting and other IT automation products.
webMethods specializes in advanced API management and integration tools and operates seamlessly across on-premises and cloud environments. It effectively facilitates B2B integration, manages file transfer and provides API gateway functions. On the other hand, StreamSets is a DataOps and data ingestion platform with a cloud-based architecture. It ensures seamless access to diverse data sources and empowers organizations with smart data pipeline designs and real-time data integration.
By integrating these capabilities, IBM aims to create a comprehensive and advanced application and data integration platform within the industry. This integration will notably enhance watsonx’s data ingestion capabilities and also enrich customers with additional integration and API management features.
The combination of IBM’s product suite with StreamSets and webMethods will drive innovation and accelerate digital transformation by empowering enterprises to extract maximum potential from applications and data. Additionally, the merger with IBM will give StreamSets and webMethods substantial exposure on a global scale, enhancing their brand visibility and commercial prospects.
Research suggests that the global integration software market is expected to grow 16.1% each year and reach a value of around $18 billion by 2027. The recent venture highlights IBM’s strategic alignment with this positive trend, seeking to capitalize on the rising integration software market by strengthening its hybrid cloud and AI product portfolio.
IBM is betting big on the watsonx platform, which is likely to be the core technology platform for its AI capabilities. watsonx delivers the value of foundational models to the enterprise, enabling them to be more productive. This enterprise-ready AI and data platform comprises three products to help organizations accelerate and scale AI: the watsonx.ai studio for new foundation models, generative AI and machine learning, the watsonx.data fit-for-purpose data store, built on an open lake house architecture, and the watsonx.governance toolkit to help enable AI workflows to be built with responsibility and transparency.
The stock has gained 15.2% over the past year compared with the industry’s growth of 11.5%.
Image Source: Zacks Investment Research
IBM currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Model N Inc (MODN - Free Report) , carrying a Zacks Rank #2 (Buy) at present, delivered a trailing four-quarter average earnings surprise of 20.78%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MODN provides revenue management solutions for life sciences and technology companies, including applications for configuration, price, quote, rebate management and regulatory compliance. In the last reported quarter, it delivered an earnings surprise of 3.33%.
Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build cloud architecture and enhance their cloud experience. Arista delivered a trailing four-quarter average earnings surprise of 12%.
ANET holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. Arista is gaining market traction in 200 and 400-gigabit high-performance switching products and is well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.
NVIDIA Corporation (NVDA - Free Report) , currently carrying a Zacks Rank #2, delivered a trailing four-quarter average earnings surprise of 18.99%. In the last reported quarter, it delivered an earnings surprise of 19.64%.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.