04 Jun Dallas Cloud Company to be Purchased by IBM in Rumored $2 Billion Deal
Announced June 4, IBM plans to purchase SoftLayer Technologies to expand its cloud computing services.
SoftLayer, which has become known as the world’s largest privately owned web hosting company, will close a deal with IBM later this year rumored to be $2 billion or higher. Purchasing SoftLayer, IBM has said this will complete its portfolio of cloud service data centers it has purchased globally over the course of 6 years. As IBM currently owns 10 worldwide, the addition of SoftLayer’s 13 data centers will put IBM back on the map as a major cloud service provider and competitor.
This expansion will heavily focus on augmenting IBM’s public cloud model, allowing customers the ability to obtain computing services remotely from IBM data centers. Previously, emphasis was placed more on a private scale in which services were administered over the Internet only from data centers owned by corporate customers of IBM.
This deal, which has been rumored to happen since March, was part of IBM’s plan to invest and expand its cloud business ongoing since 2007. With revenue for this first quarter of the year up 70 percent from last year, they have estimated an annual revenue of $7 billion by the end of 2015.