IBM and Salesforce to invest huge in cloud

The race to capture the cloud had made two technology giants IBM & Salesforce to make huge investments in cloud computing segment. Both IBM & Salesforce had made announcement to acquire companies Softlayer & ExactTarget respectively. While IBM’s deal will reach to $2 billion whereas Salesforce deal will reach to $2.5 billion.

IBM to acquire Softlayer in USD 2 billion

IBM’s acquisition of Softlayer will help it strengthen its leadership position in cloud computing and will help it speed business adoption of public and private cloud solutions. Softlayer is among the world’s largest IaaS provider with 13 data centres and 100,000 devices under management. It competes with Amazon’s web services business and Rackspace Hosting.

Through this acquisition IBM expects to reach $7 billion annually in cloud revenue by the end of 2015. Currently, it offers more than 100 SaaS solutions.

Also IBM has also announced launch of its Cloud Services Division, this new division will combine SoftLayer with IBM SmartCloud into a global platform. It will provide a broad range of choices to both IBM and SoftLayer clients, ISVs, channel partners and technology partners.

Salesforce to acquire ExactTarget for USD 2.5 billion Inc. will be spending about $2.5 billion to buy ExactTarget Inc which will help Salesforce to expand its offerings.

ExactTarget provides cross-channel digital marketing SaaS solutions for organizations to communicate with their customers through email, mobile, social media, web and marketing automation. It’s suite of integrated applications enables marketers to plan, automate, deliver and optimize data-driven digital marketing, etc.

Gartner estimates that by 2015 consumer technology companies will have switched one-third of their traditional marketing budgets to digital, and CMOs will outspend CIOs on information technology by 2017.