IBM intends to acquire two data integration assets from the German enterprise software company, Software AG, with a cash deal valued at €2.13 billion ($2.3 billion). The deal involves IBM obtaining ownership of StreamSets, a data integration platform that Software AG acquired just last year, and WebMethods, a platform Software AG purchased in 2007 for over $500 million.
Earlier this year, Software AG was purchased by the private equity firm, Silver Lake. Initially, Silver Lake acquired a majority 63% ownership for $2.4 billion, eventually increasing its stake to over 85% in September. Recently, news has emerged that Silver Lake has now acquired 93% of Software AG, with plans to swiftly delist the company from public markets.
IBM’s acquisition of Software AG’s integration platform-as-a-service (IPAAS) aligns with its broader strategy of adopting the hybrid cloud. In recent years, the company has strengthened this shift through considerable acquisitions, including its $34 billion purchase of Red Hat in 2018, and its more recent deal to acquire Apptio for $4.6 billion in June.
While cloud computing provides businesses with several advantages, there has been a growing shift away from vendor lock-in and single cloud environments towards a more hybrid approach. This approach might depend on local in-house infrastructure for security and reduced latency, but then use one or more public cloud providers as needed for specific resources.
However, this approach requires managing and processing data that may be stored across different applications on-premises and multiple private or public clouds. Data integration systems solve this issue by allowing companies to build pipelines that can consolidate their data regardless of its location or format.
Effectively, this is what IBM is acquiring with StreamSets and WebMethods. These technologies cover various facets of application and data integration, including API management, which is WebMethods’ specific area of expertise.
Data is integral to AI, and like many businesses today, IBM has been enhancing its AI capabilities recently. This year, the company introduced Watsonx, a new data science platform that provides tools for building and deploying AI while managing all data sources in one platform. The recent acquisitions of StreamSets and WebMethods will be employed within this effort, bolstering IBM’s ability to manage data from various sources and enhancing their AI capabilities.
IBM’s senior VP for software and chief commercial officer Rob Thomas said in a press release;
Together with IBM’s Watsonx AI and data platform, as well as its application modernization, data fabric and IT automation products, StreamSets and webMethods will help clients unlock the full potential of their applications and data.
