IBM (IBM) May Have Paid ~$2B for SoftLayer in Bid for Bigger Cloud-Computing Exposure
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(Updated - June 4, 2013 2:13 PM EDT)
International Business Machines (NYSE: IBM) shares are lower Tuesday following an earlier announcement that it would acquire SoftLayer to gain broader exposure in the cloud-computing segment.
Though the transaction value wasn't disclosed, Bloomberg said it might have been somewhere around $2 billion.
IBM's VP of Cloud Services Ric Telford said that SoftLayer has the "same capabilities as Amazon (Nasdaq: AMZN)."
Though cost of the acquisition might seem a little rich, IBM has a goal of hitting $7 billion in cloud revenue by 2015 and that goal wasn't altered with today's announcement. SoftLayer revenues in 2012 were $335 million, according to CEO Lance Crosby, as cited by Bloomberg.
Since launching its cloud-services platform in 2008, IBM has spent about $4 billion on acquisitions with a software-as-a-service (SaaS) component, according to the company.
IBM is currently at session lows, down 1.8 percent following the news.
International Business Machines (NYSE: IBM) shares are lower Tuesday following an earlier announcement that it would acquire SoftLayer to gain broader exposure in the cloud-computing segment.
Though the transaction value wasn't disclosed, Bloomberg said it might have been somewhere around $2 billion.
IBM's VP of Cloud Services Ric Telford said that SoftLayer has the "same capabilities as Amazon (Nasdaq: AMZN)."
Though cost of the acquisition might seem a little rich, IBM has a goal of hitting $7 billion in cloud revenue by 2015 and that goal wasn't altered with today's announcement. SoftLayer revenues in 2012 were $335 million, according to CEO Lance Crosby, as cited by Bloomberg.
Since launching its cloud-services platform in 2008, IBM has spent about $4 billion on acquisitions with a software-as-a-service (SaaS) component, according to the company.
IBM is currently at session lows, down 1.8 percent following the news.
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