A deal has been made by IBM to buy SKYARCH NETWORKS INC., a Japanese professional services company focused on AWS consulting.

The acquisition will strengthen our relationship with strategic partners like AWS and boost IBM Consulting's ability to help clients with their cloud transformation.

Since it was established in 2001, SKYARCH NETWORKS has become a leading company in Japan for managed service providers and cloud development, focusing on AWS. SKYARCH NETWORKS is an AWS Advanced Tier Partner. They have a skilled team of AWS specialists who are knowledgeable in infrastructure creation, operation monitoring, internal production support, and maintenance across various industries. The robust platform engineering services provided by SKYARCH NETWORKS will improve IBM Consulting's hybrid cloud service offerings.

Companies looking to implement generative AI across their organization and fully leverage their data need a hybrid cloud infrastructure. The market for clouds will expand in tandem with the need for generative AI. The Japanese cloud market is actually expected to increase by 17.9% CAGR between 2022 and 2027, according to IDC. By the end of 2024, IBM plans to have 10,000 consultants worldwide trained and skilled in AWS generative AI services. SKYARCH NETWORKS will position IBM Consulting to meet the growing demand for comprehensive cloud services expertise in the area.

IBM's acquisition reflects its commitment to an open ecosystem strategy, working with various technology partners to deliver value to customers based on their specific needs. According to their research, open innovation is essential for businesses. IBM Institute for Business Value found that 59% of companies leading in open innovation have higher revenue growth, and 84% of executives consider open innovation critical for their company's expansion.

With today's announcement, IBM will have acquired five companies by 2024. IBM has acquired over 40 companies under CEO Arvind Krishna to improve their hybrid cloud and artificial intelligence capabilities. This anticipated purchase will be the company's 18th for IBM Consulting.

The anticipated closing date of the acquisition is June 2024, contingent upon regulatory approvals and customary closing conditions.