IBM acquires Finnish cloud startup Nordcloud to take on Amazon, Google, and Microsoft in hybrid computing
IBM announced Monday that it has acquired Finnish cloud startup Nordcloud as the battle with Amazon Web Services (AWS), Google, and Microsoft heats up. The total amount of the transaction was not disclosed. The tech giant said the acquisition will “turbocharge” its hybrid cloud consulting ability.
Founded in 2011 by Fernando Herrera, the Helsinki, Finland-based Nordcloud helps enterprises leverage the public cloud to transform their business. Over the past 10 years, the privately held company has grown into a pan-European leader in cloud transformation services. It is one of the few providers triple certified in Amazon Web Services, Google Cloud Platform and Microsoft Azure. Nordcloud has a current turnover of around 50 million euros ($61 million) and over 450 employees, according to its LinkedIn page.
Following the close of the transaction, Nordcloud will become an IBM Company. Financial details were not disclosed. The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2021. In a press statement, IBM said:
“Our clients are increasingly taking a more holistic approach to application modernization that allows them to operate across a traditional IT environment, private cloud and public clouds,” said John Granger, Senior Vice President, Cloud Application Innovation and Chief Operating Officer, IBM Global Business Services. “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 delivering our clients’ successful journey to the cloud.”
“IBM’s hybrid cloud approach is very complementary with our cloud-native approach to helping clients migrate, manage and modernize in the cloud,” said 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.”
Leading IT industry analysts estimate the market for cloud professional services will exceed $200 billion by 2024. 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. This acquisition is the latest example of how IBM is expanding the breadth and depth of its hybrid cloud offerings to manage complex integrations – of technologies, people, and processes.