Applications Software Technology, or AST, is expected to boost IBM’s consulting expertise in Oracle Cloud Applications, especially for local governments, education and other public sector customers.
As IBM navigates scrutiny overseas over its planned $6.4 billion HashiCorp purchase, the tech giant looks to close a separate deal for global Oracle consultancy Applications Software Technology during this quarter.
Lisle, Ill.-based AST has been an Oracle partner since 1996, according to a statement by Armonk, N.Y.-based IBM. AST is expected to boost IBM’s consulting expertise in Oracle Cloud Applications, especially for local governments, education and other public sector customers.
IBM did not disclose financial details for the deal, which comes days before the mainframe, cloud and AI vendor’s fourth fiscal quarter earnings call Jan. 29. The vendor aims to purchase AST from New York-based private equity firm Recognize Partners.
“We are excited to join IBM and open up new opportunities for our people and expand transformative solutions to deliver business outcomes for our customers,” AST CEO Justin Winter said in the statement. “Applications Software Technology and IBM have complementary capabilities, client relationships, service offerings and values around our people, innovation and commitment to client success. Together, we will continue to grow in the market for cloud transformation solutions.”
[RELATED: IBM’s Hashicorp Acquisition Now Faces UK Investigation]
IBM To Buy AST
CRN has reached out to IBM and Oracle for comment.
IBM’s consulting wing is No. 6 on CRN’s 2024 Solution Provider 500. According to CRN’s 2024 Channel Chiefs, IBM’s vendor side has been working to increase the overall percentage of company revenue that comes through the channel and improve partner technical skills.
The AST purchase will bring more consulting power to IBM clients using Oracle Fusion Cloud Enterprise Resource Management, Oracle Cloud Human Capital Management, Oracle Fusion Configure, Price, Quote and other offerings from the vendor, including subsidiaries JD Edwards and NetSuite, according to IBM.
The AST deal comes shortly after buying a separate Oracle services provider, Bellevue, Wash.-based Accelalpha.
AST has expertise in leveraging Salesforce and the CRM and AI vendor’s subsidiary MuleSoft with public sector entities. AST also serves customers in manufacturing, consumer packaged goods and energy. The consultancy has employees in the U.S., U.K., Canada and India.
AST owner Recognize is no stranger to investing in solution providers. In December, Recognize invested in MSSP SDG. Late last year, it became majority owner of Blue Mantis, No. 148 on CRN’s 2024 Solution Provider 500.
Last year, IBM’s consulting-minded purchases included Japan-based Amazon Web Services consultancy Skyarch Networks and assets from British software and services provider Advanced. It also sold its QRadar cybersecurity assets to security vendor Palo Alto Networks for $500 million.
IBM reported in October that it ended the third fiscal quarter with $13.7 billion of cash, restricted cash and marketable securities, suggesting that more acquisitions could come.
