IBM has announced its plan to acquire application modernization assets from the UK-based company Advanced. This acquisition is a key element of IBM’s ongoing strategy to enhance its consulting services, focusing particularly on the mainframe application and data modernization domain. It signifies a major advancement in the company’s hybrid cloud and AI strategy.

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Advanced’s Role in Mainframe Modernization

Headquartered in Birmingham, UK, Advanced specializes in mainframe modernization, offering comprehensive services for migrating OpenVMS and VME systems. IBM’s goal is to integrate Advanced’s capabilities into its own offerings, with a special emphasis on the IBM watsonx Code Assistant for Z. This generative AI-assisted tool is designed to aid IBM Z systems clients in modernizing their applications.

Decades of Expertise Joining IBM Consulting

The professionals from Advanced, set to join IBM Consulting after the acquisition, bring with them over three decades of experience in supporting clients’ mainframe strategies and application modernization agendas. Their services range from assessment and design to mainframe transformation and integration, and full deployment. Their expertise covers a wide range of industries, including financial services, insurance, automotive, travel and transportation, government, utilities, and media.

Acquisition Timeline and Strategic Implications

The acquisition is expected to conclude in the second quarter of 2024. While the financial details of the transaction have not been disclosed, this move is IBM’s first major acquisition in 2024. It follows a consistent pattern of strategic acquisitions since Arvind Krishna became CEO in April 2020, with IBM acquiring over 35 companies to strengthen its hybrid cloud and AI capabilities.

IBM’s Vision for the Future of Technology

This strategic acquisition by IBM is poised to be significant in its efforts to deliver comprehensive services in the area of mainframe application modernization, addressing the growing needs of its clients. It also emphasizes IBM’s commitment to remaining a leader in the rapidly evolving technology landscape, focusing on areas like mainframe modernization and AI-enhanced tools.