RESEARCH TRIANGLE PARK – IBM reportedly is buying a mainframe computer support business from Germany’s Deutsche Telecom in a deal worth nearly $1 billion, according to media reports.
And investment news site Zacks sees the deal as a potential winner for Big Blue.
“We may say that with the move (if it leads to fruition) IBM is aiming to enhance the prospects of its growth areas. In fact, IBM’s mainframe is doing well, lately,” Zacks reported.
“Notably, IBM’s Cloud Managed Services deployed on its z mainframe systems, broadens the use of a mainframe to a secure scalable cloud platform enabling businesses to seamlessly adjust to evolving consumer needs.”
The deal comes just days after IBM disclosed layoffs at a subsidiary in Durham and two days ahead of a Red Hat shareholders meeting on Wednesday at which they will vote on the proposed $34 billion merger with IBM.
IBM to lay off more than 300 in Durham after sale of a subsidiary
Reuters cited a German newspaper that says Big Blue has agreed to acquire consulting firm T-Systems’ mainframe group for some $986 million.
IT-Zoom, a tech news site, said IBM would acquire a business presence in six countries that has some 400 employees. They reportedly will join IBM in May.
Later in a statement to Reuters, IBM said that existing customer contracts will not be affected.
“T-Systems will continue to offer mainframe services, but will subsequently provide these services with IBM,”at IBM spokesperson said.
However, the deal still requires regulatory approval.
