IBM Expands Its Oracle Cloud Capabilities Through the Acquisition of Applications Software Technology
January 16, 2025
In a significant business move, IBM has announced its intention to acquire Applications Software Technology LLC, a globally recognized Oracle consultancy. This acquisition underscores IBM’s strategy to amplify its Oracle Cloud Applications offerings, particularly within the public sector, including local government and education sectors in the United States and the United Kingdom.
Addressing Public Sector Challenges with Cloud Transformations
The public sector often encounters unique challenges when transitioning to cloud technologies. These challenges range from the complexities of migrating legacy systems, to a shortage of specialized skills, and stringent security and compliance requirements. Through this acquisition, IBM aims to bolster its Oracle solutions, providing enhanced support to clients in North America, the UK, and Ireland, thereby navigating these challenges effectively. This move builds upon IBM’s previous acquisition of Accelalpha in 2024, further extending its capacity to assist clients in deploying, managing, and extracting value from Oracle cloud solutions.
Kelly Chambliss, Senior Vice President of IBM Consulting in the Americas, highlighted the importance of having a consulting partner with deep industry, domain, and technological expertise to aid public sector clients in their cloud transformations. With the acquisition of Applications Software Technology, IBM is strengthening its Oracle Cloud Application skills, enabling clients to undertake their business transformations with increased confidence.
Expertise and Partnerships
Applications Software Technology boasts a highly skilled team of consultants with proficiency across the Oracle Cloud Applications Suite. Their expertise spans Oracle Fusion Cloud Enterprise Resource Management (ERP), Enterprise Performance Management (EPM), Oracle Cloud Human Capital Management (HCM), and Oracle Fusion Configure, Price, Quote (CPQ). Additionally, their proficiency extends to Oracle Cloud Infrastructure (OCI), JD Edwards, and NetSuite. Applications Software Technology also partners with Salesforce and MuleSoft, enhancing its public sector solutions.
This acquisition exemplifies IBM’s open ecosystem approach. This strategy allows IBM to meet clients at their current technological stage, integrating necessary technology and expertise across its growing partner ecosystem to tackle client challenges effectively.
A Legacy of Oracle Partnership
Applications Software Technology has been an Oracle partner since 1996, establishing itself as a leader in providing Oracle solutions. Their services encompass business process redesign and Oracle Cloud deployment. Beyond its strong presence in the public sector, Applications Software Technology serves commercial clients in industries such as manufacturing, energy, and consumer packaged goods.
Justin Winter, CEO of Applications Software Technology, expressed excitement about joining IBM, anticipating new opportunities for his team and expanded transformative solutions for clients. Winter emphasized that both companies share complementary capabilities, client relationships, service offerings, and a commitment to client success.
A Global Footprint
Headquartered in Lisle, Illinois, Applications Software Technology has a widespread presence with teams across the US, UK, Canada, and India. The company’s growth has been fueled by key acquisitions such as Symatrix Limited, 9EDGE Inc., and Computer Technology Resources Inc. It is currently a portfolio company managed by Recognize Partners LP. Upon the acquisition’s completion, Applications Software Technology will be integrated into IBM Consulting.
A Long-standing Relationship with Oracle
IBM’s partnership with Oracle spans nearly four decades. In 2023, IBM was recognized as a Leader in the IDC MarketScape for Oracle Implementation Services Ecosystem Worldwide. This new acquisition is expected to be completed in the first quarter of 2025, pending customary closing conditions and regulatory approvals. Financial details of the transaction have not been disclosed.
About IBM
IBM stands as a leading provider of global hybrid cloud, AI, and consulting expertise, assisting clients in over 175 countries. The company helps clients harness insights from their data, streamline business processes, reduce costs, and gain a competitive edge in their industries. IBM’s hybrid cloud platform and Red Hat OpenShift are relied upon by thousands of government and corporate entities in critical infrastructure sectors such as financial services, telecommunications, and healthcare to facilitate rapid, efficient, and secure digital transformations. IBM’s innovations in AI, quantum computing, industry-specific cloud solutions, and consulting offer open and flexible options to clients, backed by the company’s enduring commitment to trust, transparency, responsibility, inclusivity, and service.
For more information, visit IBM’s website.
Conclusion
This strategic acquisition of Applications Software Technology by IBM signifies a vital step in enhancing IBM’s Oracle Cloud capabilities, particularly in the public sector. By leveraging the expertise and partnerships that Applications Software Technology brings, IBM is poised to deliver even more robust and effective digital transformation solutions to its clients, fostering growth and innovation in the cloud technology landscape.
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