International Business Machines Corp. (NYSE:IBM) announced its acquisition of UrbanCode Inc, a privately held high-growth software company with expertise in automating the delivery of software that helps businesses release updates for mobile, social, big data, and social applications.
The Big Blue noted that mobile, social, big data, and cloud technologies are driving the demand for a faster and more frequent methods of software delivery. According to International Business Machines Corp. (NYSE:IBM), it is no longer acceptable for clients to wait for months or days to get software updates. With the acquisition of UrbanCode, IBM will be able to use its technology to reduce the cycle time from months to minutes in delivering updates or new applications to the market.
International Business Machines Corp. (NYSE:IBM) emphasized that its approach is designed to help lower cost and risk while addressing the changing needs of its clients. IBM Rational Software general manager, Kristof Kloeckner said, “Companies that master effective software development and delivery in rapidly changing environments such as cloud, mobile and social will have a significant competitive advantage.With the acquisition of UrbanCode, IBM is uniquely positioned to help businesses from every industry accelerate delivery of their products and services to better meet client demands.”
On the other hand, Maciej Zawadzki, CEO of UrbanCode said the merger of the technologies of both companies will be unmatched in the industry. He said that their technology will provide businesses with a continuous process for developing, testing, and delivering new and updated software. Zawadzki added, “By removing the bottlenecks that traditionally exist between development teams and production systems, businesses can drive rapid innovation.”
International Business Machines Corp. (NYSE:IBM) explained that UrbanCode’s software is a natural extension of its DevOps strategy, which is intended to simplify and speed up the entire software development and delivery process for businesses. The new technology will also boost Big Blue’s SmartCloud and MobileFirst initiatives.
IBM said it will continue to support the clients of UrbanCode and improve their technologies while allowing their organizations to benefit from its broad portfolio. The company did not disclose the financial terms of the acquisition. UrbanCode is the second company purchased by IBM this year.
Last week, International Business Machines Corp. (NYSE:IBM)’s financial results for the first quarter of 2013 missed the expectation of analysts. The company reported $3 billion GAAP net income and $2.70 earnings per diluted share. Its revenue declined by 5 percent to $23.4 billion.