IBM Acquires Data Observability Software Company Databand.ai
This is technology M&A deal numbers 599 that ChannelE2E has covered so far in 2022.
- See more than 1,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.
- See all IBM acquisitions under CEO Arvind Krishna listed here.
IBM has acquired more than 25 companies since Arvind Krishna became CEO in April 2020, the company indicated.
IBM Channel Partners, MSPs Gain Data Quality Tools
Databand.ai, founded in 2018, is based in Tel Aviv, Israel and has offices in New York. The company has 51 employees listed on LinkedIn. Those employees will join the IBM Data and AI group, the buyer indicated.
Databand.ai previously was venture-backed, having raised a $14.5 million Series A round in 2020. Key investors in that round included Accel, Blumberg Capital, Lerer Hippeau, Ubiquity Ventures, Differential Ventures and Bessemer Venture Partners.
Databand.ai’s observability software allows data teams and engineers to “better understand the health of data in their system and automatically identify, troubleshoot and resolve issues, like anomalies, breaking data changes or pipeline failures, in near real-time,” IBM asserted.
Although Databand.ai’s website did not emphasize channel partnerships, IBM’s own Data and AI group continues to promote partnerships.
IBM Acquires Databand.ai: Executive Perspectives
In a prepared statement about the deal, Daniel Hernandez, general manager for data and AI, IBM, said:
“Our clients are data-driven enterprises who rely on high-quality, trustworthy data to power their mission-critical processes. When they don’t have access to the data they need in any given moment, their business can grind to a halt. With the addition of Databand.ai, IBM offers the most comprehensive set of observability capabilities for IT across applications, data and machine learning, and is continuing to provide our clients and partners with the technology they need to deliver trustworthy data and AI at scale.”
Added Josh Benamram, co-founder and CEO of Databand.ai:
“You can’t protect what you can’t see, and when the data platform is ineffective, everyone is impacted –including customers. That’s why global brands such as FanDuel, Agoda and Trax Retail already rely on Databand.ai to remove bad data surprises by detecting and resolving them before they create costly business impacts. Joining IBM will help us scale our software and significantly accelerate our ability to meet the evolving needs of enterprise clients.”
Recent IBM M&A Strategy: Tuck-in Acquisitions
Most of IBM’s recent acquisitions have been small tuck-in deals rather than lofty, high-price SaaS business purchases. The result: IBM will increasingly compete against global IT consulting firms such as Accenture, Deloitte, PriceWaterhouseCoopers and the like, ChannelE2E believes.