IBM Buys Cloud Broker Cast Iron Systems

IBM has acquired Cast Iron Systems, a cloud integrator focused on helping enterprise customers adopt cloud computing technologies, the companies said today. The deal highlights the growing niche for companies that serve as "cloud brokers" that serve as guides for companies seeking to make the most of the emerging cloud delivery model. Financial terms were not disclosed.

"The integration challenges Cast Iron Systems is tackling are crucial to clients who are looking to adopt alternative delivery models to manage their businesses," said Craig Hayman, general manager, IBM WebSphere. "The combination of IBM and Cast Iron Systems will make it easy for clients to integrate business applications, no matter where those applications reside."

Cast Iron Systems has completed thousands of cloud integrations for financial institutions, media and entertainment companies and retail organizations. The company’s clients include Allianz, NEC, Peet's Coffee & Tea, Dow Jones, Schumacher Group, ShoreTel, Sports Authority, Time Warner, Westmont University and many others.

IBM expects the global cloud computing market to grow at a compounded annual rate of 28 percent from $47 billion in 2008 to $126 billion by 2012.

“Through IBM, we can bring Cast Iron Systems’ capabilities as the world’s leading provider of cloud integration software and services to a global customer set,” said Ken Comée, president and chief executive officer, Cast Iron Systems. “Companies around the world will now gain access to our technologies through IBM’s global reach and its vast network of partners. As part of IBM, we will be able to offer clients a broader set of software, services and hardware to support their cloud and other IT initiatives.”

For more on this growing niche, see Cloud Brokers: The Next Big Opportunity? and Cloud Computing Brokers: A Resource Guide.