IBM to Acquire Application Modernization Abilities from Advanced

IBM announced that it has signed a definitive agreement to acquire application modernization capabilities from Advanced, bringing a combination of talent, tools, and knowledge to enhance IBM Consulting’s mainframe application and data modernization services.

The planned acquisition will further enable IBM to support clients’ mainframe application modernization journeys, marking another important step forward in IBM’s hybrid cloud and AI strategy, according to the company.

A hybrid cloud approach that includes and integrates mainframe computing can drive up to five times the value of a public cloud platform alone. Yet, modernizing mainframe code and data can be a complex process. In working with clients, IBM has seen how the right IT services partners can help navigate and speed their transformation journeys, protect their vital investments, and reduce risks surrounding security, data gravity, and costs, according to the company.

The planned acquisition’s services offerings aim to complement the capabilities of IBM watsonx Code Assistant for Z, enabling IBM to deliver more comprehensive options for mainframe application modernization across hardware, software, and services.

Watsonx Code Assistant for Z is a generative AI-assisted product built to help accelerate mainframe application modernization. The capabilities IBM Consulting intends to acquire together with watsonx Code Assistant for Z aim to improve end-to-end application developer lifecycle, including application discovery and analysis; code refactoring; and code conversion, so applications can better integrate with an enterprise’s hybrid cloud architecture.                                                                                                   

The transaction is subject to customary closing conditions. It is anticipated the transaction will close in the second quarter of 2024. Financial details of the transaction were not disclosed.

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