IBM agrees to purchase StreamSets and webMethods

StreamSets and webMethods play important roles in application integration, API management, and data integration, addressing the growing demand for such solutions as organisations accelerate their digital transformations.

In the official announcement, IBM cites a series of IDC predictions that touch on the state of the global integration software market. IBM reveals that this market is anticipated to exceed USD 18.0 billion in 2027, reflecting a compound annual growth rate (CAGR) of 16.1%. This acquisition comes in the context of IBM's strategic focus on AI and hybrid cloud, with StreamSets improving data ingestion capabilities for watsonx, IBM's AI and data platform, while webMethods provides additional integration and API management tools for hybrid multi-cloud environments.

The main components of the acquired offerings 

• StreamSets: A cloud-native DataOps and data ingestion platform enabling consistent access and delivery of data across diverse sources. It supports the design of smart data pipelines and facilitates real-time and batch data ingestion.
• webMethods: An integration and API management platform, available both on-premises and in the cloud, offering B2B integration, managed file transfer, and a modern API gateway for API management.

The pending acquisition, expected to be completed in the second quarter of 2024, is the result of a longstanding relationship between IBM and Software AG, spanning over two decades. Representatives from IBM talked about these recent developments and highlighted the synergy between StreamSets, webMethods, and IBM's existing portfolio. The acquisition is seen as a means to unlock the full potential of applications and data while preparing businesses for AI deployment, regardless of the location of applications or data.

The transaction is subject to customary closing conditions, including regulatory approvals. StreamSets and webMethods will be acquired using available cash on hand, leveraging IBM's global scale to support the growth and development of the acquired platforms.

What else has IBM been up to? 

In November 2023, IBM partnered with UK-based bank NatWest to improve customer experience through generative artificial intelligence. By introducing generative AI, NatWest and IBM aimed to allow the bank’s virtual assistant, Cora, to provide customers with access to a wider range of information through conversational interactions.

NatWest is currently one of the first banks in the UK to deploy generative AI with a virtual assistant, aiming to enable a safe and accessible experience in its digital services.