IBM buys fast-growing Finnish cloud company Nordcloud

IBM

Before the split, the group is buying into the rapidly growing cloud business.

(Photo: AP)

Düsseldorf IBM expands its cloud business with an acquisition: The group takes over Nordcloud from Finland. The company helps companies in ten European countries to move their business processes to the cloud. “Nordcloud is a rapidly growing company with which we are advancing our hybrid cloud strategy even more credibly,” said Gregor Pillen, head of IBM in Germany.

In a radical step, the new IBM CEO Arvind Krishna split the company into two units a few weeks ago. At the end of next year, the previous maintenance business for IT infrastructure such as networks, mainframes, data storage, PCs or data centers for around 4600 customers in over 100 countries will be separated – a business with an annual turnover of more than 19 billion dollars. A good 90,000 employees are to be settled in the new company.

What remains is an IBM business that promises more growth and a higher stock market valuation. With around 260,000 employees, it will generate its future sales primarily with products and software, primarily in the cloud. The cloud company Red Hat – acquired a good year ago for 34 billion dollars – plays a central role.

IBM wants to excel with the management of so-called hybrid clouds (the customer uses the cloud and also has their own data center on site) or multi-clouds (the customer uses cloud offers from various providers such as Amazon, Microsoft or IBM).

According to its own information, Nordcloud was able to increase its sales fivefold from 2016 to 2019 to an estimated 63 million euros. This year, the proceeds should have increased to a three-digit million amount. The company was founded in Helsinki in 2011 and has more than 400 employees.

Nothing was said about the purchase price. The takeover is likely to have been very expensive given the high stock market valuations of cloud software companies. Took over just a few weeks ago Salesforce the office communications service Slack for 26 times sales.

More: With a large-scale conversion, IBM is getting fit for the cloud age

.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.