On Thursday, tech giant IBM announced that it will acquire Turbonomic. The deal values Turbonomic between $1.5 and $2billion and is expected to be completed by the second quarter of 2021.
What IBM says about the deal
Rob Thomas, SVP of IBM Cloud and Data platform said, "Turbonomics is the next piece in our strategy around automation. We can bring distribution advantage plus integrating it into our AI ops strategy." IBM is planning to integrate Turbonomic's Application Resource Management software with Instana along with its other acquisitions. IBM will also continue its partnerships with Cisco.
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More about Turbonomic
Turbonomic is a business software provider based out of Boston. The company's cloud software helps businesses increase the real-time performance and compliance of their applications. In September 2019 the company was valued at $963 million after it raised $70 million in funding from Trend Forward Capital and highland Captial Partners. Bain Capital Ventures and Cisco are other investors in Turbonomic.
Businesses last year accelerated the transition of their applications to the public cloud due to challenges posed by the covid-19 pandemic. Turbonomic benefitted from this acceleration and saw a 41% growth in revenue for the fiscal year 2021. The company had earlier partnered with IBM in May 2020 for an OEM (original equipment manufacturer) agreement.
IBM's strategy and other acquisitions
IBM has been focusing on hybrid cloud and artificial intelligence as a matter of strategy. Last year, Arvind Krishna become CEO last year and since then the tech giant has completed 11 acquisitions in cloud and AI solutions. In 2019 IBM acquired Red Hat for $34 billion, the Turbonomics acquisition is the largest since that deal. Listed below are some of IBM's other acquisitions from the past year:
Spanugo in June 2020
Spanugo is a cybersecurity provider. Their solution is meant for businesses that operate in hybrid could environments and automates security and risk compliance procedures. IBM has integrated Spanugo's software into its cloud platform.
Instana and TruQua Enterprice in Nov 2020
German-American company Instana provides application performance management software. TruQua enterprises specialize in SAP finance and analytics solutions. By acquiring Instana, IBM was able to improve its ability to monitor and manage applications in hybrid cloud environments while the TruQua acquisition expands IBM's capability to migrate financial platforms to SAP
Nordcloud in Dec 2020
Nordcloud is a leader in cloud-native solutions. The Europe-based company provides application development, cloud implementation, managed services, and training. Through the acquisition, IBM enhanced its cloud services and capability to help businesses adopt hybrid-cloud platforms.
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