On April 29th, IBM agreed to buy turbonomic. Turbonomic, a software provider that helps companies monitor the performance of their business applications, is the latest in a series of cloud computing acquisitions by the technology giant.
The deal values turbonomic at between $1.5bn and $2bn, according to people familiar with the matter. The deal confirms earlier Reuters reports that it will be IBM’s biggest since it bought red hat for $34 billion in 2019.
IBM shares rose slightly on the afternoon of the 29th.
The acquisition is IBM’s 11th since Arvind Krishna became chief executive last year. Krishna has been leading a major transformation, doubling the scale of the hybrid cloud and AI space. “Turbonomics is the next step in our strategy around automation,” said Rob Thomas, senior vice president of IBM cloud and data platform. We can bring distribution advantage and integrate it into our AI OPS strategy. “
IBM plans to integrate turbonomic’s application resource management software with instana and other recent acquisitions, and to maintain a partnership with Cisco after the deal.
According to public information, turbonomics (formerly known as vmturbo Operations Manager), a cross platform virtualization monitoring and management tool service provider, provides automated analysis of monitoring data in virtual environments such as VMware, Microsoft, Citrix and red hat to help customers improve the real-time performance and compliance of their applications. Recently, turbonomic announced its financial results for fiscal year 2021, with revenue increasing by 41%, thanks to the surge in demand from customers who accelerated the application conversion to public cloud during the coronavirus pandemic.
According to pitchbook data, the company raised $70 million in September 2019 from trend forward capital and highland capital partners, valued at $963 million. Turbonomic has previously worked with IBM, including signing an original equipment manufacturer (OEM) agreement in May 2020.
In the view of China software network, with the continuous implementation of IBM’s bet on hybrid cloud strategy, the construction of a comprehensive hybrid cloud service system is in the process of forming. The automation monitoring platform of turbonomics not only helps it improve its service in hybrid cloud, but also makes up for its assistance in AI.
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