The consideration for the acquisition is reportedly between $1.5bn and $2bn
IBM has agreed to acquire Turbonomic, a US-based software provider for application resource management (ARM) and network performance management (NPM).
The parties did not disclose the financial terms. However, the consideration is reportedly in the range of $1.5bn to $2bn, reported Reuters, citing undisclosed sources who are familiar with the development.
Headquartered in Boston, Turbonomic had developed an analytics engine that is said to help in continuously making resourcing decisions on the basis of real-time application demand. This enables the applications to get the compute, storage, and network required for performing.
Through its subsidiary SevOne, the company offers modern monitoring and analytics solutions to organisations for helping them in monitoring their networks.
Turbonomic also helps organisations in optimising their cloud capabilities through its ParkMyCloud solution, which is said to identify and remove wasted cloud spend.
Turbonomic CEO Ben Nye said: “Businesses are looking for AI-driven software to help them manage the scale and complexity challenges of running applications cross-cloud.
“Turbonomic not only prescribes actions, but allows customers to take them. The combination of IBM and Turbonomic will continuously assure target application response times even during peak demand.”
IBM said that the acquisition of the company will enable it to offer businesses with full-stack application observability and management capabilities. This will help in assuring performance and minimising costs using artificial intelligence (AI) to streamline containers, VMs, servers, storage, networks, databases, and other resources, said IBM.
Furthermore, the deal is said to complement IBM’s acquisition of Instana, an enterprise observability and application performance monitoring platform, and also the launch of IBM Cloud Pak for Watson AIOps for automating IT operations by deploying AI.
Through the integration of Turbonomic’s ARM with Instana’s APM capabilities, users can automate actions to streamline their underlying IT infrastructure, while getting performance assurance across applications.
On the other hand, Turbonomic’s ARM integration with IBM Cloud Pak for Watson AIOps is expected to enrich the ITOps experience in cross-cloud management. This will be by bridging the topology of an application to the resources on which it operates, said IBM.
Apart from that, IBM will look to make use of Turbonomic’s NPM products and strong footprint in the telecommunications industry to complement its own offerings and expertise in the area. The combination will help customers in intelligently streamlining applications running in 5G environments, said the company.
IBM automation general manager Dinesh Nirmal said: “We believe that AI-powered automation has become inevitable, helping to make all information-centric jobs more productive.
“That’s why IBM continues to invest in providing our customers with a one-stop-shop of AI-powered automation capabilities that spans business processes and IT. The addition of Turbonomic now takes our portfolio another major step forward by ensuring customers will have full visibility into what is going on throughout their hybrid cloud infrastructure, and across their entire enterprise.”
Subject to the meeting of customary closing conditions, the deal will close in Q2 2021.