In a move to enhance its cloud marketability, IBM (IBM, Financial) announced on Dec. 8 that it would be acquiring cloud video service provider, Clearleap. For the year IBM now reports 13 acquisitions involving cloud and analytics as the company focuses on making its cloud platform the leading choice for businesses.
Clearleap
As a cloud video service provider, Clearleap’s technology will make the use of video from the cloud quicker and more efficient. The acquisition comes at an opportune time for IBM since businesses are not only seeking more advanced cloud solutions, they’re also specifically seeking cloud solutions for video. In today’s business environment, video communications are rapidly evolving and companies are using video for various purposes including training and media communications. They’re also viewing video from numerous devices. With Clearleap, IBM now has a dynamic offering that can specifically meet this broad need for video on its cloud platform.
Clearleap will be bringing a number of large client relationships to IBM as it becomes integrated among IBM’s cloud business. Some of its leading clients include HBO, A+E Networks, BBC America, Sony Movie Channel, Time Warner Cable (TWC) and Verizon Communications (VZ). Clearleap has been providing innovative video solutions for clients since 2008. The acquisition by IBM will now provide it with even greater resources for more broadly enhancing its current capabilities.
IBM’s cloud business
Over the last 12 months, IBM’s cloud business has generated $9.4 billion for the firm with a growth rate of 65% over the first three quarters of the year. Initiatives in cloud are expected to help improve growth in the firm’s Global Technology Services business segment, which reported third quarter revenue of $7.94 billion, down 10% from the year-ago quarter. For the first nine months of the year, Global Technology Services is down 11% at $23.89 billion.
Investor interest
Year-to-date, IBM is down 14.85%, and for the week the stock is down 2.46% at $136.90. Warren Buffett (Trades, Portfolio) continues to be a leading guru shareholder in IBM. IBM currently accounts for 9.22% of Buffett’s portfolio and he holds 8.35% of the company’s outstanding shares.
Disclosure: I do not own shares of IBM.
