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IBM buys SoftLayer to compete with Amazon

IBM, International Business Machines, is acquiring the Dallas based cloud computing company SoftLayer Technologies. With SoftLayer IBM is looking at the low-tier or the cloud maket today dominated by Amazon.

IBM says in a press statement that the company “is acquiring SoftLayer to make it easier and faster for clients around the world to incorporate cloud computing by marrying the speed and simplicity of SoftLayer’s public cloud services with the enterprise grade reliability, security and openness of the IBM SmartCloud portfolio.”

Erich Clementi, Senior Vice President, IBM Global Technology Services. “With SoftLayer, IBM will accelerate the build-out of our public cloud infrastructure to give clients the broadest choice of cloud offerings to drive business innovation.”

IBM has announced the formation of new Cloud Services division which will combine SoftLayer with IBM SmartCloud into a global platform. IBM will expand SoftLayer cloud offerings to include OpenStack capabilities, keeping it consistent with its SmartCloud service.

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Though IBM has not disclosed the financial terms, SoftLayer may have cost IBM close to $2 billion reports the Wall Street Journal.

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