IBM has acquired Instana, a multi-cloud application performance monitoring (APM) software platform that supports Amazon Web Services (AWS), Google Cloud Platform (GCP), Microsoft Azure and more. Financial terms were not disclosed.
This is M&A deal number 479 that ChannelE2E has tracked so far in 2020. See the complete M&A deal list here.
The Instana acquisition potentially positions IBM to compete more aggressively against Cisco AppDynamics, Datadog, Dynatrace, New Relic, SolarWinds AppOptics and other APM software providers.
IBM Acquires Instana: APM Cloud Monitoring Capabilities
Headquartered in Chicago, with a development center in Germany, Instana supports applications across mobile devices, public and private clouds, and on-premises, including IBM Z, the buyer says.
Instana will offer both SaaS and on-premises solutions depending on the client's unique needs. Developers can try the Instana offering by utilizing the free sandbox and trials, already available through their website.
IBM says the acquisition is part of a larger strategy to help partners and customers simplify hybrid-cloud management. The other moves involve acquiring WDG Automation for robotic process automation (RPA), expanding a ServiceNow relationship for IT service management (ITSM), and continued Watson AI enhancements.
Instana works with multiple channel partner types, but the company didn't have a specific partner program for managed IT service providers (MSPs). Also, IBM did not mention specific partner benefits from the Instana deal.
The acquisition arrives as IBM CEO Arvind Krishna doubles down on a hybrid cloud software strategy, and prepares to spin off many of its more mature IT consulting and services businesses — particularly in the managed infrastructure services sector.
IBM Buys Instana: Executive Perspectives on Cloud APM
In a prepared statement about the deal, IBM Senior VP Rob Thomas said:
"Our clients today are faced with managing a complex technology landscape filled with mission-critical applications and data that are running across a variety of hybrid cloud environments – from public clouds, private clouds and on-premises. IBM's acquisition of Instana is yet another important step that we are taking to provide companies with the most complete portfolio of AI-automated solutions to tackle this enormous challenge and help prevent unforeseen IT incidents that can cost a business in lost revenue and reputation."
Added Mirko Novakovic, co-founder and CEO, Instana:
"With the added responsibility of ensuring the build and run quality of the software they develop, DevOps teams need a new generation of application performance monitoring and observability capabilities to succeed. Instana's observability capabilities combined with IBM's AI-powered automation capabilities across hybrid cloud environments will give clients a full view of their application performance to best optimize operations."
