IBM bolsters hybrid cloud, AI skills and capabilities with acquisition of Dialexa

IBM bolsters hybrid cloud, AI skills and capabilities with acquisition of Dialexa

Dialexa will be IBM’s sixth acquisition this year.

IBM acquires Dialexa, an American digital product engineering services company. Dialexa will join IBM Consulting, spearheading IBM’s digital product engineering services presence in the Americas.

Dialexa will be IBM’s sixth acquisition this year. It will further strengthen IBM’s skills and capabilities in hybrid cloud and artificial intelligence (AI).

Since Arvind Krishna became CEO in April 2020, IBM has acquired over 25 companies. Of these, 13 acquisitions, including Dialexa, were made by IBM Consulting. Among these are Neudesic, Sentaca, Nordcloud and Tao.

The transaction is expected to close in the fourth quarter of this year. It is subject to customary closing conditions and regulatory approvals. IBM did not specify how much it pays for Dialexa.

Acquisition provides opportunities for partners IBM, Dialexa

Paul Papas is Managing Partner of IBM Consulting Americas.

IBM’s Paul Papas

“The acquisition will give Dialexa access to IBM’s vast ecosystem, provide an opportunity to collaborate with our network of partners, and leverage our shared strengths to solve customers’ complex technical problems,” he said. he declares. “It’s also an opportunity for our partners, working hand-in-hand with our Digital Product Engineering Services team, to co-create and build scalable products that drive innovation for customers.”

Keep up to date with the latest M&As impacting the channel in our roundup of M&As.

The market for product engineering services is growing rapidly, Papas said. This is a high-growth market opportunity that analysts predict will reach $700 billion by 2026.

“This is a core focus area for IBM Consulting,” he said. “With this acquisition, IBM is deepening our expertise in product engineering and expanding our footprint in the space to strengthen our capabilities to deliver digital transformation services to our customers. We are expanding the portfolio of work we do around digital design and IT integration, combined with the engineering services provided by Dialexa, providing our customers with a full range of expertise and capabilities at their disposal.

As they seek to thrive in an increasingly digital world, IBM clients are turning to digital product engineering service providers to create new opportunities for creating digital products that generate new sources of revenue, add services and improve employee productivity, Papas said.

“This acquisition will strengthen our ability to meet the evolving design, strategy and execution needs of our clients and deliver end-to-end digital transformation,” he said. “Additionally, we have the ability to leverage our trusted partners, integrating partner technologies into products for customers and employees, which will drive better business outcomes for our customers.”

Ongoing investments in hybrid cloud, AI capabilities and services

IBM continues to invest in hybrid cloud and AI capabilities and services, Pappas said. Clients seek them out from IBM Consulting and IBM Software.

“And as you’ve seen, we’ve invested heavily in our ecosystem,” he said. “In fact, many of the acquisitions we announced increased our expertise in different partner technologies and platforms, such as Neudesic in Microsoft Azure, 7Summits in Salesforce, Taos for AWS and Microsoft Azure, and more.

Scott Harper is the CEO and co-founder of Dialexa.

“Digital product engineering represents the tip of the spear of competitive advantage,” he said. “IBM and Dialexa’s shared vision to deliver industry-defining digital products could be a game-changer.”

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