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IBM Acquires Neudesic, Leading Microsoft Azure Consultancy

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IBM has acquired Neudesic, a leading U.S. cloud services consultancy specializing in Microsoft Azure. This acquisition enhances IBM's portfolio of hybrid multicloud services and strengthens its AI strategy. Since Arvind Krishna became CEO in April 2020, IBM has acquired over 20 companies, with Neudesic being its latest. The firm adds over 1,500 cloud experts and augments IBM's capabilities across various cloud platforms. Financial details of the acquisition are undisclosed, marking a significant step in IBM's ongoing investment in cloud services.

Positive
  • Acquisition of Neudesic enhances IBM's expertise in Microsoft Azure and multicloud services.
  • Strengthens IBM's hybrid cloud and AI strategy, meeting growing client demand.
  • Neudesic adds over 1,500 cloud and data experts to IBM's workforce.
Negative
  • None.

ARMONK, N.Y., Feb. 15, 2022 /PRNewswire/ -- IBM (NYSE: IBM) today announced it has acquired Neudesic, a leading U.S. cloud services consultancy specializing primarily in the Microsoft Azure platform, along with bringing skills in multicloud. This acquisition will significantly expand IBM's portfolio of hybrid multicloud services and further advance the company's hybrid cloud and AI strategy.

IBM continues to invest in its hybrid cloud and AI strategy, expanding its cloud services technology, skills and capabilities to meet the growing demand of clients' hybrid cloud needs. Including Neudesic, IBM has acquired more than 20 companies -- 12 in IBM Consulting alone -- since Arvind Krishna became CEO in April 2020. Today's news builds upon IBM's prior acquisitions of cloud transformation capabilities, including Sentaca, SXiQ, BoxBoat, Nordcloud and Taos.

To improve operational agility, businesses are investing aggressively in their application portfolio, and according to IDC, 69 percent of companies worldwide view application modernization as a top or high priority2. The ability to accelerate digital transformation through application development, modernization and data capabilities, powered by the cloud, plays a significant role in achieving their operational goals. Yet enterprises are facing an acute cloud-native skills shortage.3

"As one of the leading cloud platforms, Microsoft Azure is key to many of our clients' ability to modernize and innovate," said John Granger, Senior Vice President, IBM Consulting. "Neudesic adds deep Azure cloud, data engineering and data analytics expertise to accelerate our clients' hybrid cloud journeys. This builds upon IBM's prior acquisitions of cloud transformation capabilities last year."

"Customers are driving incredible acceleration across Microsoft cloud services, and it's more important than ever to have trusted partners, like IBM, skilled in our technology," said Judson Althoff, Executive Vice President and Chief Commercial Officer, Microsoft. "Neudesic and Microsoft are enabling enterprises to achieve their business outcomes with our Azure platform, leveraging a combination of services and IP. With this acquisition, IBM Consulting is gaining even more capabilities and assets to help customers succeed on their digital transformation journeys."

Headquartered in Irvine, California, Neudesic has more than 1,500 cloud and data experts located across the U.S. and in India. Neudesic provides a full scope of digital transformation services across advisory, application development, cloud migration, DevOps, integration, data engineering, data visualization and hyper-automation. As a top Microsoft global solution partner, Neudesic has deep expertise in technology transformation and delivering Microsoft Azure cloud services to clients across the health and life sciences, financial services, energy and utilities, professional services and retail industries.

Neudesic's cloud and data consultants will join IBM Consulting's growing hybrid cloud services business, enhancing IBM's ability to help clients meet their business needs with multicloud technologies. Neudesic extends IBM Consulting's skills and certifications across the hybrid cloud ecosystem including Microsoft, AWS, Google Cloud Platform, Databricks, Snowflake, Denodo, Kubernetes, MuleSoft, RedHat, Salesforce, UIPath, SAP and Oracle.

"As a Microsoft Gold Partner with multiple Azure competencies, Neudesic is excited to enhance IBM's hybrid cloud strategy with extensive Azure capabilities," said Parsa Rohani, Co-Founder and CEO, Neudesic. "The combination of our capabilities with IBM's hybrid cloud vision and scale will drive even more impactful innovation for clients."

Financial details of the deal were not disclosed. IBM and Neudesic signed a definitive agreement leading to today's acquisition in IBM's fourth quarter 2021.

About Neudesic
Neudesic is the trusted technology partner in business innovation, delivering impactful business results to clients through digital modernization and evolution. Our consultants bring business and technology expertise together, offering a wide range of cloud and data-driven solutions, including custom application development, data and artificial intelligence, and comprehensive managed services. Founded in 2002, Neudesic is headquartered in Irvine, California.

To learn more about IBM Consulting, please visit: www.ibm.com/consulting

1 

Source: Estimate based on Gartner and IDC 2024 projections for cloud managed services and professional services.

2 

Source: IDC Application Services Survey

3 

Source: 451 Research: 2021 Trends in Cloud Native

Media Contact:

Marisa Conway

IBM External Relations

conwaym@us.ibm.com

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SOURCE IBM

FAQ

What is the significance of IBM's acquisition of Neudesic?

The acquisition significantly enhances IBM's capabilities in hybrid multicloud services and strengthens its position in the Microsoft Azure ecosystem.

When did IBM acquire Neudesic?

IBM announced the acquisition of Neudesic on February 15, 2022.

How many companies has IBM acquired since Arvind Krishna became CEO?

IBM has acquired more than 20 companies since Arvind Krishna became CEO in April 2020.

What expertise does Neudesic bring to IBM?

Neudesic brings deep expertise in Microsoft Azure, cloud migration, data engineering, and analytics, enhancing IBM's consulting services.

Are the financial details of the Neudesic acquisition disclosed?

No, the financial details of the acquisition have not been disclosed.

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