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IBM acquires Microsoft Azure consultancy, Neudesic

By Shannon Williams
Fri 25 Feb 2022

IBM has acquired Neudesic, a leading U.S. cloud services consultancy specialising primarily in the Microsoft Azure platform, along with bringing skills in multicloud. 

According to the company, the acquisition will significantly expand IBM's portfolio of hybrid multicloud services and further advance its hybrid cloud and AI strategy.

IBM continues to invest in its hybrid cloud and AI strategy, expanding its cloud services technology, skills and capabilities to meet the growing demand of clients' hybrid cloud needs. Including Neudesic, IBM has acquired more than 20 companies -- 12 in IBM Consulting alone -- since Arvind Krishna became CEO in April 2020. The news builds upon IBM's prior acquisitions of cloud transformation capabilities, including Sentaca, SXiQ, BoxBoat, Nordcloud and Taos.

To improve operational agility, businesses are investing aggressively in their application portfolio, and according to IDC, 69% of companies worldwide view application modernisation as a top or high priority. The ability to accelerate digital transformation through application development, modernisation and data capabilities, powered by the cloud, plays a significant role in achieving their operational goals. Yet enterprises are facing an acute cloud-native skills shortage.3

"As one of the leading cloud platforms, Microsoft Azure is key to many of our clients' ability to modernise and innovate," says John Granger, senior vice president, IBM Consulting. 

"Neudesic adds deep Azure cloud, data engineering and data analytics expertise to accelerate our clients' hybrid cloud journeys. This builds upon IBM's prior acquisitions of cloud transformation capabilities last year," he says.

Judson Althoff, executive vice president and chief commercial officer at Microsoft, says, "Customers are driving incredible acceleration across Microsoft cloud services, and it's more important than ever to have trusted partners, like IBM, skilled in our technology.

"Neudesic and Microsoft are enabling enterprises to achieve their business outcomes with our Azure platform, leveraging a combination of services and IP," he says.

"With this acquisition, IBM Consulting is gaining even more capabilities and assets to help customers succeed on their digital transformation journeys."

Headquartered in Irvine, California, Neudesic has more than 1500 cloud and data experts located across the U.S. and in India. Neudesic provides a full scope of digital transformation services across advisory, application development, cloud migration, DevOps, integration, data engineering, data visualisation and hyper-automation. As a top Microsoft global solution partner, Neudesic has deep expertise in technology transformation and delivering Microsoft Azure cloud services to clients across the health and life sciences, financial services, energy and utilities, professional services and retail industries.

Neudesic's cloud and data consultants will join IBM Consulting's growing hybrid cloud services business, enhancing IBM's ability to help clients meet their business needs with multicloud technologies. Neudesic extends IBM Consulting's skills and certifications across the hybrid cloud ecosystem including Microsoft, AWS, Google Cloud Platform, Databricks, Snowflake, Denodo, Kubernetes, MuleSoft, RedHat, Salesforce, UIPath, SAP and Oracle.

"As a Microsoft Gold Partner with multiple Azure competencies, Neudesic is excited to enhance IBM's hybrid cloud strategy with extensive Azure capabilities," says Parsa Rohani, co-Founder and chief executive at Neudesic. 

"The combination of our capabilities with IBM's hybrid cloud vision and scale will drive even more impactful innovation for clients."

Financial details of the deal were not disclosed. IBM and Neudesic signed a definitive agreement leading to the acquisition in IBM's fourth quarter 2021.

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