IBM is distributing two data integration assets from Germany-based enterprise software company Software AG for 2.13 billion euros ($2.3 billion).
The all-cash transaction will see IBM take ownership. stream set Data integration platform acquired by Software AG just last year and WebMethods, acquired by Software AG for more than $500 million back in 2007.
It’s worth noting that Software AG itself was acquired by Silver Lake earlier this year, obtaining majority ownership of 63% before raising the investment amount to $2.4 billion, 85% or more during September. Silver Lake today just bought it. It owns 93% of Software AG, which will soon be delisted from the public market.
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For IBM, the purchase of Software AG’s Integration Platform-as-a-Service (IPAAS) toolset fits into a broader commitment to hybrid cloud that the company has strengthened over the years with a series of major acquisitions. Includes the company’s $34 acquisition in 2018 of Red Hat for $1 billion and most recently its $4.6 billion acquisition of Apptio in June.
Although cloud computing offers many benefits to enterprises, vendor lock-in and aversion to a single cloud environment are increasing, leading to a more hybrid approach, one that relies on local on-premises infrastructure for security and low-latency purposes. A potentially dependent approach is required. Leverage one or more public cloud providers for specific resources as needed.
However, this means you need to manage and process data that may be stored in a variety of applications, both on-premises and across multiple private or public clouds. And this is where data integration systems come in, allowing companies to build pipelines that can pool data regardless of its location or format.
And this is effectively what IBM is buying with StreamSets and WebMethods: technology that spans the various layers that make up application and data integration, including API management, which WebMethods specifically provides.
Data is also the foundation of AI, and like almost every business today, IBM has been upping its AI game lately. In fact, this year the company introduced a new data science platform called Watsonx. It provides tools to build and deploy AI and manage all your data sources in one platform. And this is where IBM’s two acquisitions will come into play.
“Together with IBM’s Watsonx AI and data platform and its application modernization, data fabric, and IT automation products, StreamSets and webMethods help clients realize the full potential of their applications and data.” IBM said. Rob Thomas, Senior Vice President and Chief Commercial Officer of Software, said in a press release.
Source: techcrunch.com
