Latest IBM Acquisition Aimed At Improving Consulting Capabilities

IBM plans to buy a portion of British software and services provider Advanced to boost the vendor’s own mainframe application and data modernization services.

The Armonk, N.Y.-based tech giant – whose consulting wing is No. 7 on CRN’s 2023 Solution Provider 500 – expects to close on the acquisition in the second quarter, according to an IBM statement. Financial terms were not disclosed.

“A hybrid cloud approach that includes and integrates mainframe computing can drive up to five times the value of a public cloud platform alone,” according to the IBM statement. “Yet, modernizing mainframe code and data can be a complex process. In working with our clients, we’ve seen how the right IT services partners can help navigate and speed their transformation journeys, protect their vital investments, and reduce risks surrounding security, data gravity and costs.”

[RELATED: IBM To Boost Watsonx With $2B Purchase Of Two Software AG Platforms]

IBM Acquires Advanced Assets

CRN has reached out to IBM for additional comment.

The Advanced team joining IBM brings 30-plus years of experience and knowhow around mainframe application modernization through assessment and design, mainframe transformation and integration, and full deployment, according to the statement.

The team also has expertise in financial services, insurance, automotive, travel, transportation, government, utilities and media. IBM Consulting’s boost through the acquisition should also complement existing services for IBM Watsonx Code Assistant for Z, a product powered by generative AI (GenAI) that aims to accelerate mainframe application modernization.

Following the acquisition, IBM Consulting should have better application discovery and analysis capabilities, better code refactoring, better code conversion and other end-to-end application developer lifecycle improvements, according to IBM.

The Advanced acquisition is the first one announced for IBM in 2024. However, another IBM acquisition set to close in the second quarter is the €2.13 billion (U.S.$2.33 billion) purchase of two platforms owned by Software AG in an effort to boost the data ingestion and integration management capabilities of Watsonx.

During Arvind Krishna’s four-year tenure as CEO, IBM has acquired more than 35 companies.

Advanced is a portfolio company of Vista Equity Partners from whom IBM acquired Apptio in August for about $4.6 billion.

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