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September 28, 2010

IBM acquires Blade Network Technologies

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by Janet Harris

IBM is believed to be paying between $350 million and $370 million for Blade Network Technologies which makes blade server, rack switch and virtualisation management software.

The move marks a U-turn for IBM which divested its network business SNA to Cisco in 1999, but with Cisco now a serious competitor in the server market, IBM is upping its game.

The addition of Blade will boost IBM’s capabilities in the higher margin virtualisation market, facilitating the integration of networks with IBM systems for cloud computing.

BM is also planning to takeover Netezza Corp, a data warehouse appliance company for $1.7 billion, but the deal is now facing a legal challenge from investors who believe the sale price is inadequate.

Story link: IBM acquires Blade Network Technologies


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