IBM mulling deep into cloud computing as latest report says that the Business machine Giant has acquired live video streaming service Ustream. Reports stirred that the deal was valued at around $130 million though exact figures are not known.
The present CEO of Ustream, Brad Hunstable is not expected to be in the leadership team. General Manager Braxton Jarratt, is known to take the charge.
The live video streaming service has the likes of Facebook, NASA and the Discovery Channel among its clients. The new Cloud Video Services being set up by IBM will now have Ustream along with the recently acquired start-up Clearleap. IBM is on an acquiring row to foster its new unit in order to substitute the fall in sales in the desktop market. IBM believes that the cloud based video sector is $105 billion strong and is growing at a rapid rate.
“Through this latest acquisition and the creation of a new cloud business unit, IBM will provide an end-to-end suite of digital video solutions for the first time under one roof,” Jarratt said. “As a result, clients will be able to take advantage of every stage of the video life cycle through advances in customization, digital access, visual analytics and more, all to enable the consistent delivery of video content globally.”
The acquisition advances IBM’s growing efforts to set a firm footing in the cloud computing sector. Ustream, which was founded nine years ago, will aid the blue chip maker in its efforts. Following the deal, IBM has disclosed that it will be launching a new Cloud Video Services unit soon.
The estimated $130 million deal will scuffle some of the staff from Ustream to work at the new unit of IBM. The deal’s value is bleak in front of the amount shelled by Amazon – $970 million to acquire Twitch.