03 May 2010
IBM has agreed to acquire Cast Iron Systems in a move designed to bolster its line of cloud computing services.
California-based Cast Iron Systems specialises in tools to help companies integrate web-based services with locally-hosted applications.
IBM said that it would be folding Cast Iron Systems into its business process integration and software division. The company plans to use Cast Iron's products to offer "hybrid" deployments that mix cloud services with local applications.
"The combination of IBM and Cast Iron Systems will make it easy for clients to integrate business applications, no matter where those applications reside," said IBM WebSphere general manager Craig Hayman
"This will give clients greater agility and as a result, better business outcome."
Big Blue has high hopes for the business process integration software unit. The company said that the unit grew 20 per cent in the first quarter of 2010 and would carve out a significant share of a cloud computing market that IBM has forecast to reach $126bn by 2012.
IBM said that it will continue to offer support for Cast Iron's current product portfolio and offer transitions to its own business services. The company plans to make all 75 of Cast Iron's staff IBM employees.
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