IBM to Acquire BLADE Network Technologies

Technology to further optimize the company's servers for cloud computing, analytics and other new workloads.

IBM, a provider of IT infrastructure services, today announced that it has entered into a definitive agreement to acquire BLADE Network Technologies (BLADE), a provider in network virtualization for servers and storage. The company says that the acquisition is anticipated to close in the fourth quarter of 2010, subject to the satisfaction of customary closing conditions and applicable regulatory reviews. Financial terms were not disclosed by it.

The company explains that BLADE provides blade server and top-of-rack switches as well as software to virtualize and manage cloud computing and other workloads. Customers include more than half of the companies on the Fortune 500 list across 26 industry verticals, including automotive, telecom services, education, government, healthcare, defense and finance. The company and BLADE have worked together since 2002, resulting in thousands of joint clients. In fact, over 50 percent of its System x BladeCenters currently attach to or use BLADE products (1).

It further explains that the BLADE acquisition builds on the capabilities and technologies the company is applying to its systems, which are optimized to help clients manage a range of new, more demanding workloads. This year, it introduced a full line-up of new, workload-optimized systems that incorporate innovation at each level - from microprocessors and firmware software to middleware and hardware. With BLADE, the company can drive innovation at the systems networking level to enable clients to speed the delivery of key information from system to system - for workloads such as analytics and cloud computing - while also reducing data center costs.

According to the company, emerging business models from smart grids to smart traffic systems are infusing intelligence into every day processes, generating a torrent of information. Business decisions require rapid access to that information. BLADE's switches and software are designed to improve systems performance for faster delivery of information, optimize virtual environments and lower energy use.

It states that over the past 18 months, the company has expanded its core networking business through relationships with leading networking companies. It plans to continue providing clients a choice in core networking solutions through these important, ongoing relationships while using BLADE's industry standard-based system networking technology to create systems that are efficient, easy to manage and simple to deploy. Today, networks are made up of different layers, each one designed to pass information up and down to the next layer as data is processed. BLADE's switches will be brought closer to the company's systems and then pass information to the core networking layer, optimizing systems performance.

The company avers that BLADE provides software that helps address the massive virtualization requirements of cloud computing environments. BLADE software allows servers to more closely integrate with the network so that clients can deploy thousands of virtual machines to run large application workloads in the cloud and reduce complexity through simplified management.

"BLADE will help IBM better integrate networks with its systems, optimizing them for workloads that require high-speed and low-latency performance such as cloud computing and business analytics. For example, faster data transport enables faster decisions important for analytics workloads," said Brian Truskowski, General Manager, IBM System Storage and Networking. "BLADE will increase IBM's System Networking development, sales, support, skills and awareness and help IBM build smarter systems that are optimized for client requirements."

"BLADE views this as a great opportunity to continue working with the ecosystem of technology providers that have helped make our company successful while allowing our technology to become a more central part of the data center," said Vikram Mehta, CEO of BLADE. "Our very talented and hard working people are focused on building innovative system networking solutions, making BLADE an ideal fit to help IBM execute on its strategy to build smarter systems that deliver more value to clients around the world."