Blog Post

Multicloud mania drives CSC to buy ServiceMesh

If you didn’t believe the hype around hybrid cloud, CSC certainly does. The IT services giant is buying ServiceMesh, a company that centralizes management of multiple clouds for enterprises that want to mix and match their cloud providers.

The acquisition, terms of which were not disclosed, shows how important the ability to use and manage cloud services from multiple vendors is becoming to IT buyers who don’t want to lock into one vendor and want to choose the best SaaS and IaaS solutions to meet their needs. And ServiceMesh’s ability to provide that sort of converged management with the service levels IT buyers want could be a critical asset.

ServiceMesh competes with systems management products from legacy providers like HP(s hpq) and IBM(s ibm) but was built from the ground up for cloud deployments. Towards that end, the Santa Monica, Calif.-based company netted $15 million in venture funding two years ago from Ignition Partners.

IT buyers worry that the adoption of cloud services may echo pitfalls of earlier tech eras — the server sprawl engendered by the client-server boom, for example. “They want to stay ahead of that in the cloud,” CSC’s CTO Dan Hushon said in an interview. ServiceMesh can help with that, he said.

Earlier this year CSC acquired Infochimps to beef up its big data portfolio and now has secured a company to help customers deploy and migrate cloud applications as needed.

“This is an early mover deal — cloud applications are just starting to mature, there will be alot more of these deals to come,” said Sunil Grover, EVP of martinwolf Global M&A Advisors, a company that consults on merger strategies.

A move like this one and the earlier Infochimps buy help transition CSC from its traditional IT outsourcing roots to be even more actively involved in big accounts.

In a statement announcing the move, which is expected to close in CSC’s third fiscal quarter, CSC CEO Mike Lawrie — an IBM veteran — said:

“ServiceMesh allows us to catalogue enterprise applications and orchestrate those applications dynamically to run in different clouds based on the characteristics of the applications. From our unique position as an independent global technology company, we will integrate those workloads for our clients through our portfolio of services and technologies.”

One Response to “Multicloud mania drives CSC to buy ServiceMesh”