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IBM paid ~$2B to acquire SoftLayer, Bloomberg and the NYT report. GigaOm notes the startup...

IBM paid ~$2B to acquire SoftLayer, Bloomberg and the NYT report. GigaOm notes the startup "could help bring order" to the "extremely messy legacy code" behind IBM's Smart Cloud offerings. An IBM exec claims SoftLayer provides needed expertise for supporting private and hybrid clouds, as IBM offers value-added software/services on top of basic infrastructure offerings. Will IBM/SoftLayer pose a challenge to Amazon Web Services (AMZN)? Like AWS, SoftLayer claims many Web/cloud firms as clients, and its support for hybrid server environments is a selling point. But it remains to be seen if IBM will match AWS' aggressive pricing. The purchase comes as IBM protests a $600M deal Amazon scored with the CIA.
Comments (5)
  • krk
    , contributor
    Comments (821) | Send Message
    I think the acquisition is precisely aimed at Amazon.
    SoftLayer is Beating Amazon in Supporting the Application Lifecycle


    "..Private cloud software providers like Piston Cloud, which sells an enterprise-class version of Open Stack, and hosting providers like Logicworks find clients are seeking to use their products and services to migrate applications off of AWS ..
    SoftLayer will be attractive for CIOs who realize they don’t want to invent hybrid cloud/on-premise operational procedures from scratch. .. Amazon doesn’t seem interested in productizing operations for the cloud and on-premise in a standard way..."
    4 Jun 2013, 11:27 AM Reply Like
  • Paulo Santos
    , contributor
    Comments (18874) | Send Message
    This article of mine explains why AWS is not thrilled about hybrid clouds:


    How Amazon's AWS Can Attract Ugly Economics
    4 Jun 2013, 01:52 PM Reply Like
  • krk
    , contributor
    Comments (821) | Send Message
    The challenge for Amazon will be to keep its capex-lite startup customers to continue to stay in the AWS walled garden even after they grow large enough and have post-financing wherewithal to afford a captive baseload computing capacity for a hybrid cloud setup.
    The puzzler is why Netflix has not adopted a hybrid cloud model and finds it a better operating model to use AWS for all its streaming and not just peaking needs?
    4 Jun 2013, 02:47 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (18874) | Send Message
    NFLX has probably negotiated very nice rates from AWS. Hard to tell.
    4 Jun 2013, 02:49 PM Reply Like
  • css1971
    , contributor
    Comments (870) | Send Message
    Whoops. The top has been announced.
    4 Jun 2013, 03:48 PM Reply Like
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