Impacts of the IBM-SoftLayer deal on the cloud industry

1 Summary

On June 4, 2013, IBM acquired cloud computing infrastructure provider SoftLayer for roughly $2 billion. This report analyzes the deal and discusses how the greater IT ecosystem will be affected and the benefits and challenges IBM now faces. It’s a move many legacy IT giants are making as they respond to the evolving cloud market and the availability of offerings like Amazon Web Services. This acquisition brings IBM the ability to deliver a truly self-service cloud experience to its customers.

This report examines:

  • The benefits of the deal, including SoftLayer’s ease of use and API capabilities
  • How competing vendors like HP and Dell will be affected and what they must do to stay ahead
  • The challenges, including talent and customer retention