As cloud computing becomes a stronger force in the industry, IBM wants to expand its services so that is why it acquired database Web hosting company SoftLayer Technologies and created a new division for clients interested in cloud services.
While financial terms were not immediately available, the deal for the Dallas-based company is worth around $2 billion, said one person, said a person familiar with the matter.
SoftLayer, founded in 2005, serves about 21,000 customers from 13 data centers it operates in the U.S., Europe and Asia. The company said it is the world’s largest privately owned web-hosting company.
In cloud computing, companies rent computing power and technology instead of buying it upfront and managing it themselves at greater initial expense.
For IBM’s part, SoftLayer is helping the company build out its private and public cloud-based services for its clients. IBM said it expected to gain $7 billion annually in revenue from cloud services by the end of 2015.
The new division called Cloud Services will combine SoftLayer and IBM’s existing offerings into a global platform.
IBM said it expected the deal to close in the third quarter.