IBM to Acquire Application Service Provider Corio
The purchase, for $182 million in cash, is expected to help IBM's hosted application services business. Besides software as a service, Corio also offers professional services, applications management and infrastructure services on a pay-as-you-go model.IBM on Tuesday announced its acquisition of Corio Inc., an enterprise application service provider, for $182 million in cash. The purchase is expected to help IBMs hosted application services business. The acquisition, subject to regulatory and Corio shareholder approval, is also expected to boost IBMs presence in the SMB (small and midsized business) arena, where Corio has a presence. Despite little association with the SMB space by many companies, IBM has been delivering services to that sector for the past 10 years and earns about 20 percent of its revenues there, officials said.
Corio, of San Carlos, Calif., essentially delivers software as a service providing software from application providers such as Oracle Corp., PeopleSoft Inc.which was acquired by Oracle earlier this monthSAP AG, and Siebel Systems Inc.