Ruminations on tech, the digital media, and some golf thrown in for good measure.

IBM Acquires Cloud Computing Firm Cast Iron Systems

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IBM announced today it has acquired Cast Iron Systems to broaden the delivery of cloud computing services for clients.

Cast Iron Systems is a privately held company based in Mountain View, CA, and delivers cloud integration software, appliances and services.

Financial terms of the deal were not disclosed.

This acquisition expands IBM’s business process and integration software portfolio (which grew more than 20 percent in 1Q10).

Cast Iron Systems has completed thousands of cloud integrations around the world for financial institutions, media and entertainment companies, retails organizations, and many others.

In today’s competitive global business environment, companies are recognizing the need to reduce complexity and cost in order to increase their business agility. 

To do so, many organizations are accessing key business applications through software as a service models and cloud deployments.

IBM expects the global cloud computing market to grow at a compounded annual rate of 28 percent from $47 billion in 2008 to $126 billion by 2012.

A key challenge businesses face in successfully adopting cloud delivery models is integrating the disparate systems running in their data centers with new cloud based applications. 

In the past, this involved time-consuming and resource-draining coding work.  Through Cast Iron Systems, IBM is gaining the ability to help businesses rapidly integrate their cloud-based applications and on-premise systems. 

The acquisition also advances IBM’s capabilities for a hybrid cloud model, which is attractive to enterprises because it allows them to blend data from on-premise applications with public and private cloud systems.

Consistent with IBM’s software strategy, IBM will continue to support and enhance Cast Iron Systems’ technologies and clients while allowing them to take advantage of the broader IBM portfolio. 

Cast Iron Systems’ approximately 75 employees will be integrated into IBM.

Written by turbotodd

May 3, 2010 at 3:31 pm

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