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IBM has announced the acquisition of SKYARCH NETWORKS Inc., a leading managed services provider (MSP) in Japan with specialized expertise in Amazon Web Services (AWS). This acquisition aligns with IBM’s vision of leveraging hybrid cloud infrastructure to unlock the full potential of data and scale generative AI across its customer base.

The acquisition follows IBM’s recent purchase of HashiCorp and the sale of its QRadar Saas suite to Palo Alto Networks, signaling its intention to enhance its cloud service offerings. The deal is expected to close in June 2024 pending regulatory approval and marks IBM’s fifth acquisition this year and its 18th for IBM Consulting since Arvind Krishna became CEO in April 2020.

SKYARCH NETWORKS: A leader in AWS-focused services

Founded in 2001, SKYARCH NETWORKS has established itself as a leading provider of AWS-focused cloud development and managed services in Japan. As an AWS Advanced Tier Partner, the company excels in infrastructure design, development, operational monitoring, in-house production support, and maintenance It’s strongly positioned to enhance IBM Consulting’s hybrid cloud offerings in the region.

The acquisition will position IBM Consulting to address the growing demand for regional end-to-end cloud services expertise with a focus on an open ecosystem approach that works across technology partners to deliver customer value. IBM has been collaborating with AWS since 2016 on the delivery of secure, automated solutions through its Consulting Services division.

In a post on the company’s news site, John Granger, senior vice president of IBM Consulting Services, wrote, “Our research shows open innovation is a business imperative: 84% of executives stated open innovation is important for the growth of their business, and the rate of revenue growth for open innovation leaders is 59% higher than that for other companies, according to the IBM Institute for Business Value.”

The growing importance of hybrid cloud and AI

With the Japanese cloud market projected by IDC to grow at a compound annual growth rate (CAGR) of 17.9% from 2022 to 2027, the demand for cloud services, particularly in generative AI, is expected to surge. IBM’s commitment to train 10,000 consultants globally on AWS generative AI services by the end of 2024 highlights its dedication to meeting this demand.

“Hybrid cloud and AI are at the heart of digital transformation. This acquisition positions us to better serve our clients in Japan and beyond,” Granger also noted. “The expertise that SKYARCH Networks brings will be invaluable as we continue to grow our capabilities in these critical areas.”

Strengthening regional expertise and partner innovation

By integrating SKYARCH NETWORKS’ AWS expertise, IBM can better support its partners and deliver more comprehensive, tailored cloud solutions to its clients in the region. This acquisition continues IBM’s trend of strategic acquisitions to enhance its hybrid cloud and AI capabilities, reinforcing its open ecosystem approach and focus on growth-driven technologies. Additionally, it strengthens IBM’s foothold in the Asian market, positioning the company to better cater to its global client base.

Learn more about how IBM is amplifying partner initiatives this year with its Partner Plus Service Track.