IBM has acquired cloud computer technology maker Cast Iron Systems to strengthen its position in the emerging cloud computing market.
Cast Iron Systems, which was founded in 2001, offers technology that helps enterprise software users to connect their on-premise computer systems with the cloud, allowing integration with several cloud computing platforms.
According to industry experts, the Cast Iron acquisition will allow IBM to offer products based on on-premise software applications that allow customers to create their own cloud network using public cloud platforms like Amazon Web Services.
In an official press statement, IBM explained: “In today’s competitive global business environment, companies are recognizing the need to reduce complexity and cost in order to increase their business agility. Many organizations are accessing key business applications through software as a service models and cloud deployments.”
IBM said it expects the cloud computing market to be worth $126 billion by 2012, up from $47 billion in 2008.