IBM Buys SoftLayer Technologies, to Form Cloud Services Division

IBM logoIBM has agreed to buy SoftLayer Technologies for an undisclosed amount in a move aimed to bolster its cloud computing portfolio and help customers migrate to virtualized environments.

IBM expects to close the deal in the third quarter of its 2013 fiscal year and integrate SoftLayer into its SmartCloud business, IBM said Tuesday.

Erich Clementi, IBM senior vice president of global technology services, will lead the newly-combined cloud services division.

The division will aim to help IBM and SoftLayer clients, independent software vendors and partners transition to secure public and private cloud infrastructures.

Dallas-based SoftLayer provides cloud services on dedicated or shared servers to customers and the acquisition further helps these clients integrate enterprise grade solutions into their offerings, IBM said.

IBM will add OpenStack technologies to SoftLayer's cloud services, support the company's cloud partners and help its cloud ecosystem market their products.

IBM also plans to offer Smarter Cities, Smarter Commerce and other applications through SoftLayer.

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