IBM Acquires Candle

You have probably noticed the fabulous acquisition race in the middleware segment that’s been going on for the last 12 months or so.  Don’t expect it to slow down anytime soon.  Every time we stop to take a breath, another of the major players – IBM, HP, or Sun – announces another acquisition, as they move to broaden and deepen their portfolios.  They know that most customers are going to select ONE strategic vendor to automate, integrate, virtualize, and manage their IT systems and each wants to be the one with the most, the best, and the most integrated offering.

IBM announced on Thursday that it is acquiring Candle Corporation, an important player, best known for its role in automating data center management, optimizing application infrastructure, and delivering real-time application analytics to business process owners.  Perhaps best known for its mainframe offerings, Candle also provides products for distributed platforms.

Candle is a good fit for IBM – nearly all of their customers are also IBM customers and their products fit snugly into IBM’s important middleware strategy, providing customers with an enhanced set of software solutions for managing IBM’s on demand operating environment.

Candle has more than 3,000 customers worldwide.  IBM intends to provide Candle’s existing solutions to current customers while integrating the technology throughout IBM’s middleware products.  It will be managed as part of IBM’s Tivoli group.  Ultimately, the Candle products will be merged into future products, offering the best of both Candle and IBM product offerings, according to Bob LeBlanc, General Manager of Tivoli.

Candle is a private company and has been an IBM partner since its founding in 1976.  The financial details of the transaction were not disclosed; it is expected to close in the second quarter.

(back to top)  

Comments or Questions: Send Email to opinions@wohl.com

Home/ Search / 2005 Articles / Issue Archive / Free Newsletter

Entire contents © 2001  by Amy D. Wohl. All rights reserved. Reproduction of this publication in any form without prior written permission is forbidden.