International Business Machines Corporation (IBM) made an important announcement. According to this announcement, it acquired Norwegian cloud consulting services provider Nordcloud for an undisclosed sum. The company wants to gain an advantage in the increasingly fierce cloud wars.
The history of Nordcloud dates back to 2011. The company is based in Helsinki, Finland. It is worth mentioning that Nordcloud has a current turnover of around 50 million euros ($61 million) and more than 450 people work for this company.
As a reminder, cloud computing refers to when companies and individuals use someone else’s computer servers to perform a task on their machine or store some data in a place that is not their hard drive. Importantly, the hybrid cloud is used to define a combination of cloud environments including public, private, and on-premise.
According to IBM, the acquisition will significantly increase its hybrid cloud consulting ability.
Nordcloud’s cloud-native tools, methodologies, as well as talent shows that IBM is willing to strengthen its positions in the market. It is worth noting that, the cloud market boomed over the last few years. This is not the end of the story. Notably, the cloud services market has the potential to reach $200 billion by 2024.
IBM and its competitors
However, the situation is quite complicated. People should take into account that, IBM faces stiff competition from companies such as Microsoft, Amazon Web Services, as well as Google. The company is trying to rebrand itself as a hip cloud stock recently and in 2019 it acquired open-source software provider Red Hat for $34 billion.
IBM made the right decision, as thanks to Nordcloud, it will be easier to compete with Microsoft as well as other companies. The coronavirus pandemic created a lot of challenges. Millions of people around the world started to work from home due to the coronavirus pandemic. It means companies such as IBM, Google, and others have the opportunity to work with companies and individuals to offer their services.
Unfortunately, the pandemic is not over yet and it could take several months to improve the situation. The governmental and public organizations around the world are working hard to cope with coronavirus pandemic. However, even after the pandemic, the demand for cloud services will not disappear in the future. As a result, it is not surprising that IBM is willing to invest billions of dollars. It wants to compete with other companies, for this lucrative market.