IBM announced a significant move to bolster its consulting services by signing a definitive agreement to acquire application modernization capabilities from Advanced.
This strategic acquisition is set to bring a synergy of talent, tools, and knowledge to fortify IBM Consulting’s mainframe application and data modernization services. The planned acquisition is poised to play a pivotal role in advancing IBM’s hybrid cloud and AI strategy, providing critical support for clients’ mainframe application modernization journeys.
In an era where CEOs prioritize technology modernization to expedite business transformation and gain a competitive edge, the move aligns with the current industry landscape. According to a recent survey conducted by the IBM Institute for Business Value, 67 percent of executives emphasize the need for swift organizational transformation to stay ahead in the competitive landscape. Furthermore, 68 percent of respondents acknowledge the centrality of mainframe systems in their hybrid cloud strategy.
Contrary to viewing digital transformation as an “either-or” choice between cloud and mainframe, IBM advocates for a hybrid cloud approach that integrates mainframe computing. Such an approach, as per IBM’s insights, can deliver up to five times the value compared to relying solely on a public cloud platform.
However, the complexity of modernizing mainframe code and data necessitates partnerships with the right IT services providers to navigate transformation journeys effectively, safeguard investments, and mitigate risks related to security, data gravity, and costs.
The team set to join IBM Consulting boasts more than 30 years of experience working with global enterprise clients to modernize mainframe applications. Their expertise spans various sectors, including financial services, insurance, automotive, travel and transportation, government, utilities, and media. The array of mainframe application modernization services they offer includes assessment and design, mainframe transformation and integration, and full deployment.
The planned acquisition’s services are positioned to complement IBM’s existing capabilities, including Watsonx Code Assistant for Z. This generative AI-assisted product, designed to accelerate mainframe application modernization, will be enhanced by the addition of capabilities acquired through this strategic move.
The combined offerings aim to elevate the end-to-end application developer lifecycle, encompassing application discovery and analysis, code refactoring, and code conversion. This holistic approach ensures seamless integration with an enterprise’s hybrid cloud architecture.
This announcement marks IBM’s first acquisition in 2024, reinforcing its commitment to advancing hybrid cloud and AI capabilities under the leadership of CEO Arvind Krishna. Since April 2020, IBM has strategically acquired over 35 companies, solidifying its position as a key player in the rapidly evolving technology landscape.
