IBM to acquire Helsinki-based cloud startup Nordcloud; here’s why

Currently, almost every available online service requires a cloud-based platform to operate. That is why companies like IBM, Google, Amazon. Microsoft and others are vying for a bigger chunk of the cloud computing segment. To bolster its position in the cloud platform space, IBM has announced an agreement to acquire Helsinki-based cloud implementation, application transformation and managed services provider Nordcloud. 

Acquisition to help IBM accelerate its cloud capabilities

As per IBM, one of the key reasons for acquiring Nordcloud is to advance its cloud migration and transformation capabilities. This will help the company’s hybrid cloud platform growth strategy. John Granger, Senior VP, Cloud Application Innovation says, “IBM’s acquisition of Nordcloud adds the kind of deep expertise that will drive our clients’ digital transformations as well as support the further adoption of IBM’s hybrid cloud platform. Nordcloud’s cloud-native tools, methodologies and talent send a strong signal that IBM is committed to deliver our clients’ successful journey to cloud.”

Upon the close of the transaction, Nordcloud will become an IBM Company. However, the financial details were not disclosed. The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2021. 

Citing a Gartner and IDC projection, IBM notes that the market for cloud professional services is set to exceed €163.72B by 2024. Nordcloud’s acquisition is expected to help the company expand its hybrid cloud offerings to manage complex cloud-based integrations. “IBM’s open and flexible approach to advising, building, moving and managing clients’ hybrid environments gives enterprises the freedom to choose from multiple providers to best meet their business and IT needs,“ IBM states in its media release. 

From legacy to hybrid cloud

Back in October this year, IBM announced that it is taking a step away from its legacy business to go deeper into cloud services. The company did this by announcing its plan to spin off its managed infrastructure services unit as a separate public company to focus more on hybrid cloud applications and artificial intelligence. Now, with the acquisition of Nordcloud, the company took another step towards that goal. 

“IBM’s hybrid cloud approach is very complementary with our cloud-native approach to helping clients migrate, manage and modernise in the cloud,” says Fernando Herrera, chairman and founder, Nordcloud. “As an experienced partner in today’s cloud ecosystems, we work with all of the public cloud providers for the good of our clients throughout Europe. I am very excited to embrace IBM’s open innovation mindset and help grow its global footprint.”

Nordcloud is also a well-established company in the world of cloud services as it has offices in 10 European countries. It has been recognised by Gartner’s Magic Quadrant and The Financial Times as well and over the past 10 years, the privately held company has grown into a pan-European name that offers cloud transformation services. The company is also one of the few providers that is triple certified in Amazon Web Services, Google Cloud Platform and Microsoft Azure.