IBM acquires software firm Turbonomic for a reported $2bn

Vendor agrees deal worth up to $2bn, according to Reuters

IBM has agreed to acquire software firm Turbonomic for a reported $1.5bn to $2bn.

Financial details were not disclosed in the release from IBM but Reuters is reporting that the deal is worth between $1.5bn and $2bn.

Turbonomic assists companies with application performance and IBM says the acquisition will "complement the recent acquisition of Instana and launch of IBM Cloud Pak for Watson AIOps".

IBM continues to reshape its future as a hybrid cloud and AI company," said Rob Thomas, senior vice president, IBM Cloud and Data Platform.

"The Turbonomic acquisition is yet another example of our commitment to making the most impactful investments to advance this strategy and ensure customers find the most innovative ways to fuel their digital transformations."

The deal will ensure companies can "overcome the high costs associated with managing performance and availability for multiple applications sharing an increasingly complex hybrid cloud environment" IBM says.

IBM plans to integrate Turbonomic's ARM software with Instana's "APM and real-time observability capabilities" and the "ITOps capabilities of IBM Cloud Pak for Watson AIOps".

"We believe that AI-powered automation has become inevitable, helping to make all information-centric jobs more productive," said Dinesh Nirmal, General Manager, IBM Automation.

"That's why IBM continues to invest in providing our customers with a one-stop shop of AI-powered automation capabilities that spans business processes and IT.

"The addition of Turbonomic now takes our portfolio another major step forward by ensuring customers will have full visibility into what is going on throughout their hybrid cloud infrastructure, and across their entire enterprise."

By adding Turbonomic's software to the business, IBM says customers "can deliver quicker resolution of incidents", as well as being able to "automatically absorb demand spikes with no degradation to end user response time".

The acquisition will also help in the transition towards 5G, IBM claims, while building on its "ecosystem of business partners" by using Turbonomics' link with Cisco to "help customers accelerate their journey to hybrid cloud and AI".