IBM quietly amasses an amazing array of technologies in support of on-demand
"There are two ways of spreading light: To be the candle or the mirror that reflects it."
Edith Wharton
Dear Vorticians,
This is the time we're all running around for those last-minute items we need for the holidays, but I thought it would be fun to highlight one company that has been very quietly stuffing its own stocking with presents - all throughout 2005.
One of the key concepts we've covered in this newsletter for the past couple of years is my assertion that the enterprise IT market is undergoing profound change - change at a deeper level than almost any time in the past. Companies - both buyers and sellers - are repositioning toward a more flexible, virtualized compute/storage/network infrastructure and a new generation of Web-based applications.
On the vendor side, we've talked about how some of the most powerful companies are retooling themselves through acquisitions in order to capitalize on these changes. (For Enterprise 5.0? Which generation are we moving toward?) I've covered moves made by such giants as Cisco, EMC, HP and Oracle, but there's another company that is rapidly amassing an arsenal of technology for the battle ahead: IBM
This year, IBM got the most press for divesting itself of its PC division, with the sale to Lenovo. But while the world focused on that, IBM also bought up a baker's dozen worth of companies offering everything from application services to XML switching. Here's what IBM's '05 calendar looked like, flipping backwards from today:
* In December, acquire Micromuse, a provider of network management technology, for $865 million.
* Also in December, buy for an undisclosed amount Bowstreet, a maker of portal software technology.
* In November, gobble up iPhrase Systems, which offers software "that improves e-commerce sales, online service and support, and call center productivity." Terms of the deal were not announced.
* In October, purchase DataPower, a leader in XML switching technology - crucial in supporting the next generation of services-oriented applications. Deal terms not announced.
* In September, acquire DWL for an undisclosed amount. DWL provides integration software that makes it easier for customers to get a single view of information spread across an enterprise.
* In August, buy PureEdge Solutions, which develops electronic forms technology based on XML. No deal terms were made available.
* In July, snag Isogon, a provider of software asset management tools. Deal value undisclosed.
* In June, help yourself to Meiosys, which provides software that lets applications be dynamically shifted among servers without interruption. Financial terms? Not disclosed.
* In May, haul out the credit card for Gluecode Software, whose open source software helps Java developers speed apps delivery. Again, no details.
* Also in May, take over Ascential Software for $1.1 billion. Ascential is one of the top providers of enterprise integration software.
* In March, complete the acquisition of Corio, one of the leading ASPs, for $182 million.
* In February, grab Equitant, a financial outsourcer, for an undisclosed sum.
* In January, acquire SRD, a provider of identity resolution software, for an undisclosed sum.
These '05 acquisitions came on the heels of eight deals in 2004, and a number of the '04 and '05 targets had ties to IBM's venture capital arm. In addition to bolstering the software unit, the buyouts also provide IBM's Global Services division with a variety of technologies to help customers run their operations. (Interestingly, four of the bigger deals were of firms from my home state of Massachusetts. The East Coast tech folks love that.)
Why all the deals? Well, the official line is this: "Our acquisitions are designed to improve IBM's ability to create the industry's most comprehensive environment for customers to build true on demand businesses. This means new levels of integration among processes and applications inside the business, with suppliers and distributors at either end of the business, and with customers outside the enterprise.
"Each acquisition strengthens IBM's leadership in key segments such as business integration, application management and middleware, and provides further proof that IBM is investing in its future to gain new products, new technologies and increased customer access for greater market share and profitable growth."
In short, and in my words: IBM has its own, very clear vision of what's ahead in enterprise IT and it's quickly and quietly amassing the puzzle pieces it needs to bring that vision to reality. Keep an eye on the Armonk squad in '06.
Now, a personal note. As this is the final newsletter of 2005, I want to thank you all for reading and responding and making this community a vibrant one. I also want to wish you happy holidays. Enjoy, relax and we'll re-connect in 2006. If you want to re-connect sooner, reach me here.
Bye for now.
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