IBM reported on Monday its acquisition of data center communications equipment start-up Blade Networks, a 2006 spin-off from Nortel.
The value of the deal was not reported, but was estimated to be $350-370 million.
Another IBM acquisition is not all that exciting, in light of its recent string of purchases, the previous one being storage company Netezza. IBM CEO Sam Palmisano said a few months ago that the company would embark on acquisitions of about $20 billion over the next few years.
What is unique here is that for the first time in many years, IBM is buying a company that produces communications equipment. IBM, which succeeded in turning into a services and software company, focused its acquisitions in the past decade primarily in those areas. Along with that, the company made several purchases to solidify its storage strategy, which integrated hardware based on smart software.
This time IBM is entering an area in which it has operated recently only through strategic partnerships. Blade supplies switches that are integrated in communications between the server closets and the additional communications equipment in data centers. The newfound interest by IBM in the communications equipment market as a technology owner, and not just partner, immediately raised speculation about other options that may be on deck in the market.
Options include Israeli firm Voltaire Ltd. (Nasdaq:VOLT), whose solution is complementary to Blade's. Voltaire had a partnership deal with Blade. At the same time, about two weeks ago it was revealed by "Globes" that Radware Ltd. (Nasdaq: RDWR) is in talks with HP and IBM on a possible acquisition, even if its solution is in a different sector.
Published by Globes [online], Israel business news - www.globes-online.com - on September 28, 2010
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