IBM buys out Blade Network Technologies

IBM is out to buy Blade Network Technologies and has today announced a definitive agreement to take over the company.

It will bolster IBM’s booming server share, with Blade providing blade server and top of rack switches. It also provides virtualisation and management software which looks at workloads including buzzword of the last two years, cloud computing. Its kit has been used across a wide variety of sectors including telecoms, government, education, finance, health care and defense.

IBM and Blade have been working together since the turn of the millenium, sharing their joint clients since 2002 – IBM already uses Blade services or products with its System x BladeCenters.

The idea is that the acquisition will help along IBMs newest line up of systems, including microprocessors, all the way up to hardware. IBM wants to use the expertise from Blade’s side to build on cloud and analytics workloads and reducing overall costs of its data centres.

Blade’s software, IBM boasts, will help servers integrate closely with servers to keep large application workloads running with simple management. The deal makes sense with IBM’s recent analytics acquisitions, the latest being Netezza.

Blade promises its technology will help optimise its systems work together with high speed and low latency performance like business analytics. IBM recently announced it plans to open three European analytics centres.

All of the regular closing regulatory rigmarole will apply and the deal is expected to close in the fourth quarter of this year. Financial terms were not disclosed.