IBM transformation continues: 30th buy in CEO’s brief tenure is software startup

RESEARCH TRIANGLE PARK – The transformation of IBM into a company focused more on software and services, artificial intelligence and cloud computing – especially hybrid as driven by Raleigh-based Red Hat.

A three-year-old software startup focused on enabling developers to speed up applications and with less code is the newest acquisition made by IBM.

StepZen – based in Santa Clara and led by former IBM executives – became part of Big Blue this week, marking the 30th acquisition made by the tech company under the direction of CEO Arvind Krishna since he took over as the top executive in April 2020.

It’s also the first deal IBM has made in the new year.

StepZen is best known for development of its tool GraphQL.

“What does this acquisition really mean for all of you? We have had a vision: GraphQL is taking off with developers at the center of the action,” founder Anant Jhingran wrote in a blog post. “And that hard problems solved easily is where the money is. IBM shares the vision. So that is why when IBM and we started chatting, it felt natural to build on our tech with IBM’s deep software portfolio and access to the right people in small and large enterprises.”

Financial terms weren’t disclosed.

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“StepZen is the latest example of how IBM is innovating through a combination of R&D and strategic acquisitions to deliver the data, AI, and automation solutions that businesses need in the hybrid cloud era,” IBM explained in a blog post.

“StepZen complements IBM’s organic development in key areas including integration, API [application programming interface] management, data fabric, and data management. For example, IBM delivered new AI testing capabilities for IBM API Connect, which analyzes your APIs, generates test cases automatically, and reports any errors that it observes, helping improve code quality and developer productivity. We believe StepZen’s innovative technology for GraphQL API creation complements the innovations IBM is driving in API Connect to enable businesses to build better digital experiences for their clients.”

IBM operates one of its largest corporate campuses in RTP, owns Raleigh-based Red Hat and employs thousands of people across North Carolina.