IBM bets on integration, ServiceNow on process mining with strategic acquisitions

Cloud integration, process mining and task automation are hot

Tech giants IBM and ServiceNow announced strategic acquisitions this week to augment their offerings in cloud integration and process automation, two key areas in digital transformation.

On Monday, IBM announced an agreement to acquire Software AG's StreamSets and webMethods platforms, part of the German vendor's "Super iPaaS" cloud suite, for €2.13 billion. The deal will support IBM's hybrid cloud and AI strategy with new data ingestion and integration capabilities.

According to analyst firm IDC, the integration software market will top $18 billion by 2027 as businesses modernise applications and deploy AI.

StreamSets provides cloud native data pipelines to ingest data from diverse sources into analytics platforms like IBM's watsonx. Meanwhile, webMethods provides API management and integration both on-premises and in the cloud.

With over 1,500 combined customers, the platforms are growing and profitable with significant recurring revenue, according to IBM.

"Together with IBM's watsonx AI and data platform, as well as its application modernisation, data fabric and IT automation products, StreamSets and webMethods will help clients unlock the full potential of their applications and data," said Rob Thomas, SVP software and chief commercial officer at IBM.

Not to be outdone, ServiceNow revealed plans to purchase UltimateSuite, a two-year-old Czech startup specialising in task mining. The plan fits in with ServiceNow's workflow automation and process mining solutions, with capabilities to analyse how tasks flow through an organisation and identify bottlenecks that could be ripe for automation.

UltimateSuite will be integrated into ServiceNow. A price for the acquisition was not announced.

"The Now Platform is the platform for digital business, and we are continually working to help customers remove guesswork and create more intuitive processes in the day‑to‑day flow of work," said Eric Schroeder, vice president of NowX product management at ServiceNow, in a post. "Task mining is key to revealing a more accurate picture of how people work."

These acquisitions indicate how more traditional tech companies and newer cloud-based innovators alike are capitalising on demand for technologies that support organisations' move to digital.

With organisations moving to cloud and hybrid setups, solutions for cloud integration, process mining and task automation are at a premium. IBM and ServiceNow keen to be one-stop shops for their customers, able to handle their integration and automation challenges.