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IBM to buy European cloud startup Nordcloud

IBM to buy European cloud startup Nordcloud

FILE PHOTO: The logo for IBM is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., June 27, 2018. REUTERS/Brendan McDermid

REUTERS: International Business Machines will acquire European startup Nordcloud, the latest in a series of acquisitions for the 109-year old firm preparing a mega spin-off to focus on cloud computing.

The world's first big computing firm has set its sights on the so-called hybrid cloud, where it sees a US$1 trillion market opportunity as more companies use a combination of their own datacenters and leased computing resources to manage and process data.

IBM did not disclose on Monday how much it paid for the Finland-based firm.

Since taking office in April, Chief Executive Officer Arvind Krishna has acquired at least five startups from the hybrid cloud space. Krishna was the principal architect behind IBM's US$34 billion Red Hat deal last year.

IBM President Jim Whitehurst, in an interview with Reuters on Monday, said the company was unlikely to do a major acquisition in the cloud sector in near future.

"I don't see some big US$10 billion acquisition that we need to do," Whitehurst said.

(Reporting by Munsif Vengattil and Subrat Patnaik in Bengaluru; Editing by Ramakrishnan M.)

Source: Reuters

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