IBM is doling out 2.13 billion euros ($2.3 billion) to acquire a duo of data integration assets from Germany-based enterprise software company Software AG.
The all-cash deal will give IBM ownership StreamSetsa data integration platform acquired by Software AG just last yearand WebMethods, which Software AG bought for more than $500 million back in 2007.
It’s worth noting that Software AG itself was acquired by Silver Lake earlier this year, with the private equity giant initially acquiring a majority of 63% ownership for $2.4 billion before increasing its stake to more than 85% In September. Today, news has emerged that Silver Lake has now purchased 93% of Software AG, with plans to immediately delist the company from the public markets.
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For IBM, the purchase of Software AG’s integration platform toolset (IPAAS) fits into its broader embrace of hybrid cloud, a shift it has reinforced over the years with a series of big-dollar acquisitions — that includes its $34 billion acquisition of Red Hat in 2018 and most recently its $4.6 billion deal to buy Apptio in June.
While cloud computing brings many benefits to companies, there has been a growing aversion to vendor lock-in and unique cloud environments, towards a more hybrid approach, one that could rely on on-premise on-premise infrastructure for security and lower costs. latency, but then use one or more public cloud providers for specific resources when needed.
However, this means you have to manage and process data that may reside in different applications stored on-prem and multiple private or public clouds. And this is where data integration systems enter the fray, allowing companies to create pipelines that can bring their data together no matter where it is and in any form.
And that, essentially, is what IBM is buying into StreamSets and WebMethods, technologies that span the various layers that make up application and data integration, including API management, which WebMethods specifically brings to the table.
Data is also the cornerstone of AI, and as with almost every business today, IBM has been upping its AI game of late. Indeed, the company introduced a new data science platform this year called Watsonx, which serves tools to create and deploy AI, as well as manage all data sources in one platform. And here the acquisition duo of IBM will be used.
“Together with IBM’s Watsonx AI and data platform and its application modernization, data fabric and IT automation products, StreamSets and webMethods will help customers unlock the full potential of their applications and data,” senior vice president of software and chief commercial officer at IBM. Rob Thomas said in a press release.
