IBM is to buy Israel-based virtualisation management provider CSL International to expand its cloud offerings by adding management capabilities.
The financial terms of the deal will not be disclosed, IBM said. The acquisition is expected to close in the third quarter of 2013, subject to the satisfaction of customary closing conditions.
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The IT assets from CSL will be integrated with IBM’s zEnterprise System portfolio. IBM says its System z products help enterprises integrate data with analytics and enables cloud delivery. With the zEnterprise System tools, businesses can host the workloads of thousands of commodity servers on a single system for simplification and cost savings.
CSL International’s software, CSL-WAVE, is used by enterprises to monitor and manage the virtual machine hypervisor z/VM and Linux on System z environments. The software provides drag and drop options to create, discover, visualise and connect virtual servers to resources.
"As clients create smarter computing environments, they are looking for ways to manage IT costs and complexity without sacrificing security or the ability to scale," said Greg Lotko, IBM business line executive, System z.
Virtualisation forms the basis of cloud computing. By combining CSL’s virtualisation technologies with the z System tools, IBM will be able to offer customers tools to manage all aspects of z/VM and Linux on System z virtualisation, including CPU, memory, storage, and network resources, according to the mainframe company.
The acquisition comes as IBM sold almost twice the number of Linux on System z systems in the first quarter of 2013 as compared to the same period the year before.
“With the acquisition of CSL International, IBM expands its cloud virtualisation capabilities, making it even easier for clients to take advantage of Linux on System z," Lotko said.
The acquisition further extends the “value of IBM's cloud offerings”, according to the company.
This marks IBM’s second acquisition in two months as the company aims to achieve its objective of reaching $7bn annually in cloud revenue by the end of 2015. In June, it acquired cloud computing infrastructure provider SoftLayer Technologies for a reported $2bn.
With SoftLayer, IBM hopes to strengthen its position in cloud computing and help speed business adoption of public and private cloud solutions.
IBM intends to expand SoftLayer cloud to support OpenStack, the cloud operating system, supported by several major suppliers including IBM, Dell, Red Hat and Rackspace.