“Anyone who has never made a mistake has never tried anything new.” — Albert Einstein

IBM’s Enterprise Software Acquisition Spree

Thursday, August 3, 2006 | 6 comments

Oracle gets all the media attention, but IBM has been quietly buying up enterprise software companies. They have bought the following software companies in the last 2 years:

Isogon, software asset management solutions.

Micromuse, Ascential & Cyanea, performance management solutions of web-based business apps.

DWL, Customer Data Integration (CDI) Middleware.

Collation, IT service management software.

Bowstreet, portal technologies. Analysis & discussions here.
Datapower, message-aware networking. Read analysis from Burnham’s Beat. This acquisition has more nuances.

CIMS Labs, virtualization of computing resources.

BuildForge, Compliance software.

There are others.

Then, yesterday, it announced the acquisition of Webify, an SOA player. Today, they acquired MRO for $740 Million.
The trend indicates that IBM is building an IT infrastructure software porfolio by acquisition, and while it was avoiding the business application space so far, today’s acquisition of MRO is a vertical application acquisition.

So what is the strategy going forward? More infrastructure software, or diversify into application software as well?

Comments

nice roundup. here is my take on the MRO deal, if you’re interested:
http://www.redmonk.com/jgovernor/archives/002017.html

James Governor Friday, August 4, 2006 at 4:15 AM PT

Thanks, James. This is a GREAT review of the MRO acquisition. Please feel free to elaborate on Webify and the others as well. I like IBM’s portfolio of Service Management Infrastructure software that has now come together.

Sramana

Sramana Mitra Friday, August 4, 2006 at 1:54 PM PT

[…] I just did a piece on IBM’s acquisition spree, but since then, they have added another $3 billion worth of stuff. Filenet, the other acquisition since that article is an Enterprise Content Management (ECM) software provider. […]

Sramana Mitra on Strategy » Blog Archive » IBM Buys More Friday, August 25, 2006 at 1:24 AM PT

[…] IBM, on the other hand, has systematically rolled up numerous enterprise infrastructure software companies, and is likely to continue doing so. Read my earlier piece here. […]

Sramana Mitra on Strategy » Blog Archive » Oracle Acquires Hyperion Thursday, March 1, 2007 at 11:41 PM PT

[…] readily obvious that IBM intends to acquire a great deal more in India during the next 3 years. It has already acquired a number of enterprise software companies in the US over the last few years, and has started positioning as a major software vendor. On the Services side, beyong PWC and […]

Sramana Mitra on Strategy » Blog Archive » IBM’s India Strategy Thursday, April 19, 2007 at 8:12 AM PT

It seems to me that we have acquired a lot Infrastructutre tools and other app. sw in the web domain, but how we are doing using them or integrating them when we build a sloution for ourselves (Interal Business App) or for customers as part of our propsal. I do a lot of Proposal review but I dont see a quick adoption of the assets we have acquired.

Chandan Mallik Wednesday, December 12, 2007 at 8:52 AM PT

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