IBM buys 'cloud' computing company SoftLayer (Update)

Jun 04, 2013
Two men walk past an IBM logo on February 28, 2011 in Hanover, central Germany. IBM on Tuesday announced a deal to buy SoftLayer Technologies in a move aimed at ramping up its ability to offer businesses and governments computing services hosted in the Internet 'cloud.'

IBM on Tuesday announced a deal to buy SoftLayer Technologies in a move aimed at ramping up its ability to offer businesses and governments computing services hosted in the Internet 'cloud.'

"With SoftLayer, IBM will accelerate the build-out of our public cloud infrastructure to give clients the broadest choice of cloud offerings," said IBM global technology services senior vice president Erich Clementi.

New York State-based IBM did not disclose financial terms of the deal, which the New York Times valued about $2 billion, quoting an unnamed source.

SoftLayer has its headquarters in Dallas and maintains data centers in Asia, Europe and the United States to provide online computing power to approximately 21,000 customers, according to IBM.

"The compelling opportunity is connecting IBM's geographic reach, industry expertise and IBM's SmartCloud breadth with our innovative technology," SoftLayer chief executive Lance Crosby said in a release.

"Together SoftLayer and IBM expand their reach to new clients; both born-on-the-cloud and born-in-the-enterprise."

IBM boasted of already being one of the world's leading providers of cloud-based services and predicted that its revenue in that sector will reach $7 billion annually by the year 2016.

IBM said it will create a new Cloud Services division at the company after the SoftLayer acquisition, which was expected to close by October.

"SoftLayer is a perfect fit for IBM," Clementi said.

"It will help us smooth the transition of our global clients to the cloud faster, while enabling IBM to more efficiently offer them its broad portfolio of open IT infrastructure and software services."

Explore further: Winners and losers of the demise of the big Comcast deal

Related Stories

IBM posts higher 4Q net income, beats estimates

Jan 22, 2013

IBM's fourth-quarter earnings grew 6 percent even as revenue was largely flat, as the company benefited from growing, lucrative software businesses such as Internet-based computing and data analytics.

Recommended for you

How smart are the mobile shoppers who use smartphones?

15 hours ago

In the age of the smart phone, how smart are the mobile shoppers who use these almost ubiquitous devices? A study from South Korea published in the International Journal of Mobile Communications hopes to answer that questi ...

India's Infosys gives muted earnings, stock falls

17 hours ago

Indian software giant Infosys Technologies saw its shares dip nearly seven percent Friday after it reported a single digit rise in yearly revenues and also missed quarterly profit estimates.

Apple wins patent appeal in China

20 hours ago

Apple has won an appeal in China over patent rights to voice recognition software such as the iPhone's "Siri", with a court overruling an earlier decision that had gone against the US technology giant.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.