Nordcloud Acquisition: Key Details, Impact, and What Comes Next

IBM's acquisition of Nordcloud marks a significant move in the cloud services industry. By integrating Nordcloud's expertise in cloud implementation and managed services, IBM aims to bolster its hybrid cloud strategy. This acquisition is poised to enhance IBM's capabilities in cloud migration and transformation, positioning it strongly in the competitive cloud market.

What Is Nordcloud?

Founded in 2011, Nordcloud specializes in cloud services and training, offering a comprehensive suite of solutions including cloud strategy, foundation and migration, innovation and modernization, and managed services. The company stands out with its triple-certified engineering teams, platform neutrality, and extensive certifications across AWS, Microsoft Azure, and Google Cloud. Nordcloud's multi-cloud expertise and impartial advice enable clients to accelerate time to market, maximize cost savings, and achieve growth ambitions.

Who Acquired Nordcloud?

IBM is a leading technology and consulting company, playing a pivotal role in driving technological advancements and business transformation. The company offers a wide range of key products and services, including AI solutions, hybrid cloud technologies, consulting, analytics, IT automation, compute and servers, databases, and cybersecurity. Positioned as a major player in the industry, IBM's influence is underscored by its continuous innovation and comprehensive solutions that help businesses remain competitive and efficient.

When Was Nordcloud Acquired?

IBM announced its acquisition of Nordcloud on December 21, 2020. This strategic move aligns with IBM's efforts to enhance its hybrid cloud consulting capabilities amid a rapidly growing cloud services market. The timing is significant as the market for cloud professional services is projected to exceed $200 billion by 2024. This acquisition positions IBM to better compete with major players like Microsoft, Amazon Web Services, and Google, and supports its clients' digital transformations.

Why Was Nordcloud Acquired?

• Market Expansion: IBM's acquisition of Nordcloud is a strategic move to expand its hybrid cloud services in Europe. With Nordcloud's presence in 10 European countries and its expertise in AWS, Google Cloud Platform, and Microsoft Azure, IBM aims to strengthen its market position in the region. This acquisition supports IBM's hybrid cloud platform growth strategy and increases its global footprint.
• Technology Integration: Nordcloud's cloud-native tools, methodologies, and talent will be integrated into IBM's hybrid cloud offerings. This integration will enhance IBM's capabilities in cloud implementation, application transformation, and managed services, enabling more comprehensive digital transformations for clients. Nordcloud's expertise complements IBM's existing services, ensuring clients can leverage full automation, scalability, and agility of the cloud.
• Competitive Advantage: The acquisition of Nordcloud provides IBM with a competitive advantage by adding deep expertise in cloud-native services and triple certification in major cloud platforms. This positions IBM to better manage complex integrations of technologies, people, and processes, offering a more flexible and open approach to hybrid cloud environments. The move signals IBM's commitment to enhancing its hybrid cloud platform and delivering successful cloud journeys for its clients.

Acquisition Terms

• Acquisition Price: The financial details of the acquisition were not disclosed.
• Payment Method: Not specified.
• Key Conditions or Agreements:
  • The transaction is subject to customary closing conditions.
  • The acquisition is expected to close in the first quarter of 2021.
  • Following the close of the transaction, Nordcloud will become an IBM Company.

Impact on Nordcloud

The acquisition of Nordcloud by IBM has led to significant changes in operations and management. Nordcloud now operates as an IBM Company, integrating its cloud-native tools and methodologies into IBM's hybrid cloud offerings. This integration aims to enhance IBM's capabilities in cloud migration, application transformation, and managed services. Key leaders from Nordcloud, including CEO Fernando Herrera and CTO Ilja Summala, continue to play pivotal roles, ensuring a smooth transition and maintaining the company's innovative edge.

In terms of product offerings and services, the acquisition has expanded IBM's hybrid cloud consulting capabilities, leveraging Nordcloud's expertise in AWS, Google Cloud Platform, and Microsoft Azure. This synergy is expected to drive more comprehensive digital transformations for clients. Employee reactions have been positive, with Nordcloud experiencing significant growth and actively expanding its team. Customer reactions have also been favorable, with many expressing confidence in the enhanced cloud-native services and support. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly and efficiently.