Mergers and Acquisitions, Enterprise, Mergers and Acquisitions, SI

IBM Acquires Multi-Cloud MSP, Consulting Firm SXiQ

IBM has acquired SXiQ, an MSP that offers AWS and Microsoft Azure cloud implementation, migration, modernization, and cybersecurity services to customers in Australia. Financial terms of the deal were not disclosed.

This is technology M&A deal number 745 that ChannelE2E has covered so far in 2021.

This is the 20th acquisition – and tenth consulting acquisition - since Arvind Krishna became IBM’s CEO, the company notes. IBM's other recent cloud consulting acquisitions include Nordcloud, Taos, and BoxBoat. Those deals  essentially position IBM Consulting against Accenture and the like.

IBM Buys SXiQ and Gains AWS, Azure, LiveTiles, Nintex & VMware Certifications

SXiQ has 120 employees listed on LinkedIn. Those employees further strengthens IBM Consulting's capabilities in Australia, though it generally does not address the SaaS-, IaaS- and PaaS-oriented subscription revenues that IBM's Wall Street analysts and many shareholders crave.

SXIQ's certifications include:

  • Amazon AWS Certified Select Consultant Partner
  • LiveTiles Certified Partner
  • Microsoft Gold Partner across Application Integration, Application Development, Cloud Platform, Data Center, Cloud Productivity and  Cyber Security.
  • Nintex Certified Partner
  • VMWare Certified Partner

Partnerships with Acclimation, AvePoint, Datadog, Hansencx, PonyUp, SecondBite, ServiceNow, and Tesserent are also in place. Plus, the IT consulting company has multiple certifications that allow it to work closely with Australia's government.

Still, SXIQ does not rank among the world's Top 250 Public Cloud MSPs, according to ChannelE2E's 2021 research results.

IBM Acquires Hybrid Cloud Consulting Company: Executive Perspectives

In a prepared statement about the deal, John Granger, senior VP, Hybrid Cloud Services, IBM Consulting, said:

“Companies are very clearly deploying hybrid cloud strategies as interoperability, security, compliance and avoiding vendor lock-in are top of mind. IBM’s acquisition of SXiQ brings additional hybrid and multicloud expertise that is at the core of open innovation for clients.”

Added John Hanna, managing director, SXiQ:

“Our digital transformation experience and track record of client delivery on leading cloud platforms will send a strong signal affirming our and IBM’s commitment to clients’ successful journey to cloud. Our clients can now take advantage of IBM’s broad capabilities around ERP systems, Data & Analytics, Machine Learning & AI, deep platform partnerships and global delivery capabilities, allowing us to broaden the transformational capabilities we can bring to our customers, ensuring they can take their own digital transformation further and deeper.”

IBM Consulting vs. Kyndryl

Longer term, it's a safe bet IBM Consulting will wind up competing against Kyndryl, the recent managed infrastructure services spin-off from IBM.

Kyndryl has six managed services practice areas -- several of which overlap with IBM's recent consulting acquisitions.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.

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