IBM to Acquire Application Service Provider Corio

 
 
By Renee Boucher Ferguson  |  Posted 2005-01-25 Email Print this article Print
 
 
 
 
 
 
 

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 month—SAP AG, and Siebel Systems Inc.
The company also provides professional services, applications management and infrastructure services on a pay-as-you-go model, according to Corios Web site. Once the deal is done, George Kadifa, CEO of Corio, will continue to manage the company. He will also take on responsibility for IBMs application services initiative.
Corio employees will become IBM employees. The deal is expected to close within 60 days. Check out eWEEK.coms for the latest news, views and analysis on servers, switches and networking protocols for the enterprise and small businesses.
 
 
 
 
 
 
 
 
 
 
 

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