IBM Completes Acquisition of StreamSets and webMethods, Bolstering its Automation, Data and AI Portfolios

Rhea-AI Summary

IBM announced the completion of its acquisition of StreamSets and webMethods from Software AG, enhancing its capabilities in integration, API management, and data ingestion. This acquisition integrates these leading technologies into IBM's AI, data, and automation solutions.

StreamSets, with its real-time data ingestion capabilities, will be incorporated into IBM's watsonx platform, enabling better data management and AI deployment. webMethods' Integration Platform as a Service (iPaaS) will expand IBM's automation solutions, offering comprehensive application and data integration to foster innovation.

Serving over 1,500 companies globally, StreamSets and webMethods are expected to boost IBM's reach and capabilities in handling the growing needs for AI and data integration. The integration market is projected to exceed $18 billion by 2027, according to IDC.

Positive

• IBM's acquisition of StreamSets and webMethods enhances its data ingestion and integration capabilities, potentially improving its AI and automation offerings.
• The integration of these technologies into IBM's platform may drive innovation and efficiency for over 1,500 global companies.
• The market for integration software is projected to exceed $18 billion by 2027, indicating significant growth potential.

Negative

• The completion of the acquisition may lead to integration challenges and increased operational complexity.

ARMONK, N.Y., July 1, 2024 /PRNewswire/ -- IBM (NYSE: IBM) today announced it has completed its acquisition of StreamSets and webMethods from Software AG after receiving all required regulatory approvals. The acquisition brings together leading capabilities in integration, API management and data ingestion. 

The acquisition builds on IBM's extensive software portfolio, with StreamSets adding new data ingestion capabilities to IBM's AI and data platform, and webMethods bringing Integration Platform as a Service (iPaas) capabilities to IBM's Automation solutions. IBM's clients and partners will now have access to one of the most modern and comprehensive application and data integration platforms in the industry to drive innovation and prepare business for AI. 

Organizations are facing an explosion of apps, APIs, events and data spread across hybrid cloud environments worldwide. In fact, IDC estimates that 1 billion new applications are expected by 2028 due to the rapid emergence of generative AI¹. As organizations continue their digital transformation journeys, application and data integration solutions are critical for application modernization and effectively deploying AI across the enterprise.

StreamSets and webMethods currently serve more than 1,500 companies across the globe and will provide additional integration technologies for next-generation AI applications that require data and connectivity to everything, everywhere. And, the industry is continuing to grow, with IDC predicting the worldwide integration software market to exceed $18.0 billion in 2027².

"This is an important acquisition for IBM as we help our clients turn complexities into competitive advantage," said Dinesh Nirmal, Senior Vice President, Products, IBM Software. "StreamSets and webMethods bring new capabilities to our clients to embrace data and AI to better manage the growth and complexity of applications. We will empower integrators, developers, and line of business IT to build and manage integrations at an even greater and more impactful scale." 

StreamSets adds cloud-based, real-time data ingestion capabilities for various types of data to watsonx, IBM's AI and data platform.  Data ingestion helps move massive amounts of data from multiple sources to a centralized storage center where it can then be utilized by other systems/applications. When that data moves between sources and targets, streaming tools like StreamSets provide updated data in real-time to target destinations. This hybrid and multi-cloud ready product, which IBM plans to embed as a premium feature in watsonx.data, makes it easier for users to ingest, enrich, and harness the potential of streaming data enabled through features like offset handling and delivery guarantees.

StreamSets will also further extend the breadth and depth of IBM's Data Fabric and Data Integration capabilities through enabling the design of streaming data pipelines. It will complement IBM DataStage and Databand into a deeply integrated offering for data engineers, catering to multiple patterns of data integrated, infused with data observability capabilities. IBM plans to make StreamSets available across all major hyperscalers, including GCP (current) and Azure/AWS (in-progress), as well as on-premises. 

webMethods helps organizations manage the tangled web of systems, applications and data silos within business environments. The webMethods Integration Platform as a Service (iPaaS) enables users to deploy and execute integrations anywhere, while still including outputs in unified integration flows. This helps global organizations meet local data sovereignty requirements while driving enterprise-wide innovation and taking advantage of centralized management. 

IBM plans to extend the webMethods iPaaS to support the IBM integration products, giving current customers a path to multi-cloud hybrid integration.  By supporting various patterns of integration, including applications, APIs, events, and B2B, IBM will help enable users to compose modern, unified, and seamless applications and services.

For more information on StreamSets, click here.  For more information on webMethods, click here. 

Media Contact:
Hanna Scalzo
IBM Media Relations
203-512-5497
smigala@us.ibm.com

¹ Source: IDC. 1 Billion New Logical Applications: More Background, Apr 2024, US51953724
² Source: IDC. Worldwide Integration and API Management Software Forecast, 2023–2027, July 2023, US51053823

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SOURCE IBM

FAQ

What did IBM acquire in July 2024?

IBM completed the acquisition of StreamSets and webMethods from Software AG in July 2024.

How will IBM benefit from acquiring StreamSets and webMethods?

IBM will benefit by enhancing its capabilities in data ingestion, integration, and API management, which are important for its AI and automation solutions.

What are the key features of StreamSets that IBM is integrating?

StreamSets offers real-time data ingestion capabilities, which will be integrated into IBM's watsonx platform to improve data management and AI deployment.

What is the significance of webMethods' iPaaS for IBM?

webMethods' Integration Platform as a Service (iPaaS) will expand IBM's automation solutions, facilitating comprehensive application and data integration.

How many companies currently use StreamSets and webMethods?

Over 1,500 companies globally use StreamSets and webMethods.

What is the projected market value for integration software by 2027?

The market for integration software is projected to exceed $18 billion by 2027, according to IDC.