Cloud Computing: What is SoftLayer, and what did IBM, EMC and AT&T see in them?

Grazed from ITWorld. Author: Andy Patrizio.

After two months of rumor, SoftLayer Technologies found a suitor in the form of IBM. The two firms announced Big Blue would purchase the privately-held cloud services provider, ending months of speculation over what suitor might win the hand of the firm.

Not only was IBM interested, EMC and AT&T had previously checked out the company at one point, according to a Reuters report from earlier this year but bowed out, clearing the way for IBM. It shows how hot the cloud services market is because with SoftLayer comes a very large infrastructure that would take years to build. Terms of the deal were not disclosed since SoftLayer is privately-held, but the company has disclosed that 2011 revenues in the range of $335 million and was very profitable, so IBM probably paid a significant multiple on the firm…

Charles King, principal analyst for Pund-IT, said there were a few reasons SoftLayer would make an attractive acquisition target. "The company is large, profitable and well-established, meaning ROI on any deal would begin immediately. Since SoftLayer is privately held, an acquisition would be less complex and might even cost less than purchasing a public company, where contentiousness over fair value/final pricing is common," he said…

Read more from the source @ http://www.itworld.com/cloud-computing/359584/what-softlayer-and-what-did-ibm-emc-and-att-see-them