IBM announced on Thursday, Dec 6, that they will be selling some of its software products to HCL Technologies for $1.80 billion.
International Business Machines (IBM) is an American multinational information technology company that manufactures and markets computer hardware, middleware and software, and provides hosting and consulting services in areas ranging from mainframe computers to nanotechnology. Its nickname was “Big Blue”.
The company is investing their efforts in becoming a leader in the hybrid cloud market, which combines software and services delivered over the public internet with similar offerings run on companies’ own servers and data centers.
IBM said that they will be selling 7 of its products which includes BigFix – a secure device management product, Unica – a marketing automation product, and its workstream collaboration product, Connections to HCL. These software products cost more than $50 billion.
According to John Kelly, the senior vice president at IBM, the time is right to divest the selected collaboration, marketing, and commerce software assets, which are increasingly delivered as stand-alone products.
HCL Technologies is a next-generation global technology company that helps enterprises re-imagine their businesses for the digital age. They offer an integrated portfolio of products, solutions, services, and IP through their Mode 1-2-3 strategy, built around digital, IoT, cloud, automation, cybersecurity, analytics, infrastructure management, and engineering services among others.
C Vijayakumar, Chief Executive Officer of HCL, said that the products that they are buying are in large growing market areas like security, marketing, and commerce which are strategic segments for HCL.