Go to Top

$20 Billion Buying Spree: Deals Are Paying Off

IBM’s now about halfway through a five-year $20 billion acquisition binge, which has run from small startups like newly-acquired Xtify to major pick-ups like the summer’s $2 billion move for cloud infrastructure company SoftLayer. With another earnings report just days away, IBM is now seeking to show that the investments are paying off.

Three months after its purchase of SoftLayer, IBM says the service has taken on 1,600 new business customers to add to its base of 21,000, an increase of 13%.  ”This is a software acquisition we closed three months ago and we’ve alreeady seen growth out of it, it’s starting to power a broader portfolio we have in the Cloud,” says Dennis Quan, vice president of IBM Cloud Infrastructure Services.

And while it didn’t disclose terms on the purchase of Xtify, a New York startup with “several dozen” staff and a smaller product, that move represents the thirteenth addition to the Smarter Commerce unit, making it arguably the fastest growing initiative in the company with a combined investment of $3.5 billion. Over half of the 110 SaaS offerings available today fall within the group. IBM is integrating Xtify’s mobile messaging tool into its commerce and mobile portfolios, says Jay Henderson, director of IBM Smarter Commerce.


read more here