IBM Acquires Cleversafe To Beef Up Cloud Storage Business
International Business Machines Corp. (NYSE:IBM) is not relenting in its efforts to become a Big Data powerhouse. In the latest move, the company has acquired object storage provider Cleversafe. The acquisition is expected to bolster IBM’s play in the $28 billion object storage market. IBM has this year made several Big Data and Analytics acquisitions while also restructuring its various departments.
It is estimated that object-based storage will rise to become a $28 billion business by 2018. IDC says that the rise of data intensive cloud applications will give rise to demand for massive storage, which will in turn drive interest in object storage. IBM has looked at the future modeled by IDC and felt that it can be a part of it by having Cleversafe in-house.
Benefits of object storage
The kind of storage that Cleversafe provides is one where data is sliced into pieces that are then reassembled into a single copy. The strategy allows for low-cost but more secure data storage. Moreover, object data storage is more scalable. As such, International Business Machines Corp. (NYSE:IBM) hopes to benefit from these virtues by adding Cleversafe to its Cloud business unit.
IBM to get talents and customers
In addition to the object storage technology, the acquisition of Cleversafe will also add to IBM talents and a portfolio of existing customers. Up to 200 Cleversafe workers are expected to transfer to IBM following the acquisition.
Cleversafe’s object storage service is used by customers such as Shutterfly, an online photo storage provider. The company’s other customers are the media, financial, healthcare and government sectors.
Recent Big Data-related acquisitions
As International Business Machines Corp. (NYSE:IBM) works to bolters its cloud storage portfolio, the company has also made some strategic acquisitions in the recent times. It purchased software startup called StrongLoop, acquired Meteorix and paid $1 billion for Merge Healthcare.
International Business Machines Corp. (NYSE:IBM) didn’t disclose the financial details of the deal with Cleversafe.
Latest posts by Neha Gupta (see all)
- Is Facebook Inc (NASDAQ:FB) Winning Or Losing In Virtual Reality Space? - May 27, 2016 07:35 AM PST
- No Growth In Costco Wholesale Corporation (NASDAQ:COST)’s 3Q Comps Explained - May 27, 2016 07:34 AM PST
- How Will International Business Machines Corp. (NYSE:IBM)’s Big Data University Help? - May 27, 2016 07:33 AM PST