In a move bolstering its capabilities in AI and hybrid cloud offerings, IBM has announced the acquisition of StreamSets and webMethods platforms from Software AG for a cash deal worth €2.13 billion. This strategic acquisition marks a milestone in IBM's ongoing efforts to expand its technological prowess and enhance its suite of application modernization and integration tools.
StreamSets and webMethods are Software AG’s Super iPaaS (integration Platform-as-a-Service) enterprise technology platforms.
Cloud-native DataOps and data ingestion platform StreamSets is set to completely change how businesses access and distribute data from a variety of sources. The platform is intended to greatly enhance IBM’s Watsonx AI and data platform with its capacity to create intelligent data pipelines and ingest batch and real-time data. With this innovation, IBM's customers should be able to handle data consistently and effectively, which is essential for AI and digital transformation projects.
On the other hand, webMethods would offer a sophisticated framework for managing APIs and integration. This platform includes controlled file transfer, B2B connectivity, and a contemporary API gateway - all essential for administering, tracking, and making money off of APIs. It can be deployed both on-premises and in the cloud. It is anticipated that the incorporation of webMethods into IBM's portfolio would furnish customers and associates with resilient instruments for mixed-cloud hybrid setups.
Integration with Watsonx AI and Data Platform
The Super iPaaS platform from Software AG, which includes webMethods and StreamSets, has a solid recurring revenue profile and has been profitable and increasing. Currently serving more than 1,500 customers worldwide, these platforms would demonstrate both their significant market presence and the value they provide to IBM's wide range of products.
IBM's Chief Commercial Officer and Senior Vice President of Software, Rob Thomas, highlighted the acquisition's potential for synergy. He said that customers would be able to realize the full potential of their applications and data thanks to the integration of IBM's StreamSets and webMethods with its Watsonx AI and data platform, application modernization, data fabric, and IT automation technologies. It is expected that this connection, regardless of where apps or data are stored, would promote innovation and get firms ready for artificial intelligence. Thomas further emphasized that IBM now has one of the most advanced and complete application and data integration platforms in the market thanks to this purchase.
This transaction is only the latest development in IBM and Software AG's more than two-decade-long partnership. It is anticipated that the combination of StreamSets and webMethods would enhance IBM's current line of business, which includes Red Hat, Watsonx, and IT automation solutions. Furthermore, IBM Consulting stands to gain a great deal from this transaction.
Hybrid Cloud and AI
Software AG CEO Sanjay Brahmawar expressed confidence in IBM as the perfect home for webMethods and StreamSets. He emphasized that IBM's global reach and commitment to hybrid cloud and AI are critical elements that will provide tremendous growth prospects for their staff and support businesses worldwide in optimizing the value of their data and applications.
Mr. Brahmawar's views were mirrored by Christian Lucas, Managing Partner of Silver Lake and chairman of the Supervisory Board of Software AG. He underlined how this purchase offers a singular chance to innovate and develop the next generation of AI and hybrid cloud solutions for businesses. Mr. Lucas also mentioned Silver Lake's contribution to this goal, emphasizing the company's dedication to promoting extraordinary value creation for clients, staff, and other stakeholders.
The acquisition will be funded with cash on hand and is subject to customary closing conditions, such as governmental approvals. It is expected to be completed in 2024's second quarter. With this action, IBM seems to have shown its unwavering commitment to strategic mergers and acquisitions as a way to add value and solidify its position as a pioneer in artificial intelligence and hybrid cloud solutions. The inclusion of StreamSets and webMethods in IBM's portfolio is expected to enhance the company's data intake capabilities and establish its leadership position in the application modernization and integration space.
