How Does the Green Hat Acquisition Help IBM’s Cloud Strategy?

How Does the Green Hat Acquisition Help IBM’s Cloud Strategy?

IBM has made its intentions clear as far as cloud computing is concerned – it sees a lot of potential in this field and wants to be recognized as a serious player (See: IBM Expects to generate $7 billion In Cloud Computing Revenues By 2015: CEO). To this effect, it has invested big bucks to set up is own centers across the world (See: IBM Invests $38 million In Singapore Data Center To Address Asia-Pacific Cloud Computing Needs) besides buying up smaller companies (See: Some Recent Cloud Computing Acquisitions). This article looks at one such recent acquisition and how it adds value to Big Blue.

IBM recently announced the acquisition of London-based software firm Green Hat ( for an undisclosed sum. Green Hat specializes in technology for testing applications without the need to use underlying hardware, and will become part of IBM’s Rational line. By reducing the need for specialized hardware, Green Hat’s solutions provide one of the obvious advantages of cloud computing. Through these solutions, according to IBM, it is possible to set up a virtual test environment “in a matter of minutes” and “for a fraction of the cost”, unlike the weeks needed to set up a physical lab for quality checking.

Testing is an integral part of the Software Development Life Cycle (SDLC). At the same time, it is also time-consuming and expensive. By reducing the turnaround time for this, Green Hat can add considerable value to IBM clients. Although IBM made its name in hardware, today it is the largest IT services firm in the world. And with cloud computing becoming such an important part of the IT services portfolio, the Green Hat acquisition bolsters IBM’s competence in this demanding field.

“This acquisition extends IBM’s leadership in driving business agility and software quality by changing the way enterprises can manage software development cost, test cycle time and risk. Together, we offer the most complete solution available today for agile software development and testing, with flexible options such as the cloud. Green Hat’s application virtualization capabilities will help our customers accelerate their delivery of business critical software,” said Kristof Kloeckner, General Manager, IBM Rational.

We’ve been focused on transforming our customers’ software development processes through innovative testing and quality improvements. We are looking forward to bringing Green Hat’s innovative application virtualization and continuous integration testing expertise to IBM customers who have a growing business need to better manage their complex testing environments,” said Peter Cole, CEO, Green Hat.

By Sourya Biswas


Sourya Biswas is a former risk analyst who has worked with several financial organizations of international repute, besides being a freelance journalist with several articles published online. After 6 years of work, he has decided to pursue further studies at the University of Notre Dame, where he has completed his MBA. He holds a Bachelors in Engineering from the Indian Institute of Information Technology. He is also a member of high-IQ organizations Mensa and Triple Nine Society and has been a prolific writer to CloudTweaks over the years...

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