Cloud computing: IBM crunches Scandinavian managed service provider Nordcloud

IBM has just confirmed the acquisition of Nordcloud, a Scandinavian cloud-computing services operator based in Helsinki that focuses on cloud integration in Europe. Terms of the deal were not disclosed, but IBM management said the purchase is aimed at advancing its cloud migration services and tools, especially in the Old Continent. As a reminder, Nordcloud is triple certified in Amazon Web Services, Google Cloud and Microsoft Azure.

According to IBM’s staff, the purchase of Nordcloud will help it secure EU-based cloud deals and set up managed services that will be part of its efforts in hybrid cloud, led by Red Hat. This purchase comes as IBM is positioning itself as a hybrid cloud software provider. IBM said it would separate its technology services unit to become an independent company.

Nordcloud faces stiff competition in a crowded cloud infrastructure managed service company market. The Scandinavian operator is thus in head-on competition with integrators such as Accenture, Wipro, Deloitte and Cognizant as well as with companies such as Rackspace. Nordcloud’s key sectors are manufacturing, technology, financial services and services and the company offers everything from tooling to application services, as well as managed cloud offerings.

An operator based in Eastern Europe and Scandinavia

For Gartner, “Nordcloud continues to expand into markets beyond its home country of Finland, utilizing its local sales and delivery teams and expanding its presence in 10 European countries to target customers with European roots “.

The consulting firm notes that “Nordcloud has also carried out projects for clients in Singapore, Australia, China, the Middle East and North America”, although its main centers are based in Finland and the countries of ‘Eastern Europe.

However, Gartner also notes that Nordcloud is not a major player in the market. The operator has never made any major acquisitions and has found it difficult to “deliver needs that go beyond public cloud services”. IBM can quickly remedy these weaknesses in hybrid cloud services, its own strength.

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