Reports: IBM and EMC eyeing $2bn buyout of SoftLayer

Vendor duo battling it out for web hosting firm SoftLayer, according to sources

IBM and EMC are battling it out to buy web hosting firm SoftLayer in a deal which could fetch more than $2bn (£1.33m), according to sources.

Reuters reported this morning that Texas-based SoftLayer has hired Morgan Stanley and Credit Suisse to run the sale, with multiple sources indicating that both vendor giants are interested.

IBM and SoftLayer were both unavailable to comment when contacted by CRN, and EMC said it would not comment on "speculation or rumour".

In recent years, EMC has bought out software firm Watch4Net, storage supplier Iomega and NAS firm Isilon, along with Silver Tail Systems and XtremIO.

IBM has swallowed up Texas Memory Systems, Butterfly Software and StoredIQ in the past year, among others.

SoftLayer, which was established in 2005 and is majority owned by GI Partners, provides datacentre and hosting services in cities across the world including Amsterdam, Seattle and Washington DC.