IBM to Acquire Cloud Computing Consultant Taos Mountain
By Jared Council
International Business Machines Corp. said Thursday that it
would acquire Taos Mountain LLC, an IT firm that helps companies
shift software and data online. Terms of the transaction, expected
to close this quarter, were not disclosed.
The deal marks the ninth acquisition since Arvind Krishna became
IBM's chief executive in April, spelling out the company's focus on
hybrid cloud and artificial intelligence, the company said.
Taos, founded in 1989, is a consulting firm that helps companies
migrate their applications and data from in-house servers they
manage to remote computing infrastructure, known as the cloud. IBM
said Taos has helped clients including Target Corp., Netflix Inc.,
and Sephora migrate to and manage their cloud environments.
Taos has partnerships with major cloud providers--Amazon.com
Inc.'s Amazon Web Services, Alphabet Inc.'s Google Cloud Platform,
and Microsoft Corp.'s Azure, according to IBM.
IBM already had similar consulting services, but acquired Taos
partly because of the strength of Taos's partnerships with major
public cloud service providers, said John Granger senior vice
president of cloud application innovation and chief operating
officer of IBM Global Business Services. He also said Taos brings
technical expertise with respect to data center migration and
"It's really that combination of those skills with these very
strong partnerships," Mr. Granger said. He later added: "We have
some capability in this space, but these are, for us in Global
Business Services, a significant strengthening of our capability in
this space with these cloud providers."
Taos has nearly 600 employees in the U.S. and Canada, IBM said.
Privately held Taos is a majority-owned portfolio company of Bunker
Hill Capital. Bunker Hill, with offices in Boston and San Diego,
invests in lower-middle market companies with revenues between $5
million and $100 million, according to its website.
Following the acquisition Taos will operate as an independent
business unit "for the next couple of years," Mr. Granger said, and
integrate it with IBM's offerings over time. Taos CEO Hamilton Yu
will remain with the company, he added.
At IBM, Mr. Krishna has been trying to boost company growth
partly through a greater focus on hybrid cloud computing. In that
vision, thousands of companies will migrate to the cloud in the
coming years, but they will keep some equipment in-house. They also
are expected to use multiple cloud providers and data centers,
creating opportunities for IBM to manage the complexities of that
AI is also a major focus for IBM, as it envisions companies will
strive to make their business processes and workflows more
intelligent. "It's not the journey to the cloud that matters; it's
what you do when you get there," Mr. Granger said. "And what you do
when you get there is the business transformation services."
IBM announced acquisitions of several firms to help meet those
ambitions. It announced in November its acquisition of Instana, a
Chicago-based software company that helps clients use AI to manage
and automate their cloud applications. IBM also announced it was
acquiring Helsinki-based Nordcloud, which has similar capabilities
as Taos, in December.
The acquisitions follow IBM's move last fall to spin off a large
part of its managed services business into a separate company.
Write to Jared Council at email@example.com
(END) Dow Jones Newswires
January 14, 2021 11:14 ET (16:14 GMT)
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