IBM to Build Out Hub for Cloud of Clouds with Cast Iron Acquisition

Updated: May 03, 2010

Cast Iron recently delivered OmniConnect, a cloud integration solution offers a single platform rather than multiple products or on-premise tools to accomplish cloud integrations.

With the addition of Cast Iron Systems to its portfolio, IBM will be able to offer clients a complete platform to integrate cloud applications from providers including, Amazon, NetSuite and ADP with on-premise applications, such as SAP and JD Edwards, said IBM.

IBM needs to make sure the core value of integration, a mainstay of its WebSphere brands, does not slide up and out of the enterprises data center and then become controlled then by the likes of cloud leaders Google, Microsoft, Amazon and I guess we can think of Cast Iron as a way to bring WebSphere to cloud integrations.

IBM expects the global cloud computing market to grow at a compounded annual rate of 28 percent from $47 billion in 2008 to $126 billion by 2012.

The Cast Iron buy jettisons IBM into extending its integration role across more types of integration, across cloud ecosystems and for becoming a traffic cop of sorts for web services and cloud API activities. Cast Iron, a privately held company founded in 2001, becomes part of IBM as of today. Terms of the sale were not released.

Security, integration, and customization form the top three hurdles that enterprises face in exploiting the benefits of cloud computing, said Craig Hayman, General Manager, Websphere, at IBM, in announcing the acquisition at the IBM Impact event in Las Vegas.

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