IBM Acquires Blue Box To Get Into OpenStack
IBM on Wednesday announced that it has acquired Blue Box, a managed private cloud services provider based on OpenStack technology. IBM did not disclose how much it paid to acquire Blue Box. IBM said it will continue to support Blue Box clients and enhance their technologies while offering them the broader IBM cloud portfolio.
The deal accelerates IBM's open cloud strategy by making it easier for companies to move data and applications across clouds and adopt hybrid cloud environments. The deal also strengthens IBM's existing OpenStack portfolio, with the addition of a remotely managed OpenStack offering to provide users with a local cloud and increased visibility, control and security.
Seattle-based Blue Box provides businesses with a simple, private cloud as a service platform, based on OpenStack technology. It helps speed delivery of applications and data through simplified and consistent access to public and hybrid cloud environments, and provides a single management tool for OpenStack-based private clouds. With Blue Box, customers can now integrate cloud-based applications and on-premise systems into OpenStack-managed cloud environments, simplifying the deployments of workloads across hybrid cloud environments. Blue Box also supports managed infrastructure services for IBM's Bluemix platform as a service. Currently, the company has 300 global clients, including global mass media company Viacom and US-based healthcare tech company BioIQ.
Consolidation in the cloud industry is heating up, as high tech companies announced acquisitions in the OpenStack space. Last year, storage giant EMC acquired Cloudscaling to boost OpenStack presence and HP bought OpenStack startup Eucalyptus to boost cloud offerings. And just this week, Cisco made an OpenStack related acquisition with its purchase of Piston Cloud Computing, a startup known for its own distribution of the OpenStack cloud software.
This latest acquisition by IBM is aimed at boosting its presence in the fastest-growing OpenStack market. IBM is currently battling a sustained decline in cloud revenue. The company has experienced a year-over-year drop in Gartner's IaaS ranking, which could easily be topped by competitors.
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