International Business Machine
) recently added another name to its asset list with the
acquisition of Fiberlink, which specializes in the development of
enterprise mobile management (EMM) solutions.
This acquisition, expected to close this year, reflects IBM's
growing focus on the cloud computing business. Fiberlink
Communications specializes in mobile management and security.
This acquisition will help IBM to offer total mobile management
and security solution through IBM MobileFirst, which includes
trusted transactions and security intelligence capabilities.
As per the latest forecast published by the industry research
firm Fierce Mobile IT, the corporate mobile SaaS market is
predicted to grow at a CAGR of 19% to reach $4.7 billion by
Moreover, another industry research firm CMSWire believes that
the U.S. will be the principal regional driver for SaaS in the
North American region on the back of strong demand for mobile,
cloud and smart technologies and estimated growth of 6.7% for the
entire technology sector in the U.S. in 2014.
IBM has resorted to acquisitions time and again to gain access
to new technology. This strategy has helped the company to
enhance its product portfolio, which ultimately helps in
generating incremental revenues, strengthening its technology
leadership and resulting in a more favorable mix of business.
IBM's strategy of acquiring companies that can be easily
integrated into its current business has helped it to expand its
product portfolio to higher-growth segments, such as business
analytics, IT security, cloud computing and software. The
acquisitions have also increased its scale of operations
IBM will continue to benefit from its new initiatives like
cloud computing, smarter planet, business analytics and
optimization over the long term. However, stiff competition from
Hewlett Packard Co.
) and sluggish IT spending are the major headwinds going
IBM has a Zacks Rank #3 (Hold).
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