IBM to boost cloud services with Cast Iron buy

Cast Iron's cloud integration technology will expand IBM's lineup for businesses that want to link in-house applications with cloud and SaaS systems
Written by Tom Perry, Contributor

IBM has acquired Cast Iron Systems, a cloud integration software, appliances and services company.

The deal will boost IBM's line-up of business process and integration products, the technology giant said in its announcement on Monday. Silicon Valley-based Cast Iron helps businesses integrate software-as-a-service (SaaS) and cloud applications from Salesforce.com, Amazon and other providers with their in-house business applications. It also offers integration products to cloud and SaaS providers.

In addition, IBM expects to use Cast Iron's technology to improve its ability to help clients set up hybrid clouds, which meld applications inside a company with public and private cloud systems.

"The combination of IBM and Cast Iron Systems will make it easy for clients to integrate business applications, no matter where those applications reside. This will give clients greater agility," said Craig Hayman, vice president for application and integration for IBM WebSphere, in a statement.

Cast Iron uses prebuilt software templates for integration rather than writing custom code. This allows cloud integrations to be carried out in days, as opposed to weeks, whether using physical appliances, virtual appliances or a cloud service, according to IBM.

Financial terms of the deal were not released. IBM said it expects the cloud-computing market to reach $126bn (£83bn) by 2012, a jump of 28 percent over the $47bn spent in 2008.

Privately-held Cast Iron's 75 or so employees will be incorporated into IBM, the company said.

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