IBM acquires cloud computing company Cast Iron Systems

04 May 2010

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Technology giant, International Business Machines (IBM) said yesterday that it has acquired privately held software company Cast Iron Systems to broaden the delivery of cloud computing services to its clients for an undisclosed sum.

Mountain View, California-based Cast Iron Systems is a privately held company and an industry leader in cloud integration software, appliances and services.

Cast Iron Systems has completed thousands of cloud integrations around the world for financial institutions, media and entertainment companies and retail organisations. The company's clients include Allianz, NEC, Peet's Coffee & Tea, Dow Jones, Schumacher Group, ShoreTel, Sports Authority, Time Warner and Westmont University, among others.

The IBM Software Group, which has made more than 55 acquisitions since 2003, said this acquisition would help it to expand into its business process and integration software portfolio, which grew more than 20 per cent in the first quarter of 2010.

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.

IBM already possesses integration capabilities for both on-premise and business-to-business applications. With the addition of Cast Iron Systems to its portfolio, IBM will be able to offer clients a complete platform to integrate cloud applications from providers, including Salesforce.com, Amazon, NetSuite and ADP with on-premise applications, such as SAP and JD Edwards, said the Armonk, New York-based IBM.
 
"The integration challenges Cast Iron Systems is tackling are crucial to clients who are looking to adopt alternative delivery models to manage their businesses," said Craig Hayman, general manager, IBM WebSphere. "The combination of IBM and Cast Iron Systems will make it easy for clients to integrate business applications, no matter where those applications reside. This will give clients greater agility and as a result, better business outcomes," he said.

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