IBM acquires Seattle-based Cloud Provider, Blue Box

By | June 4, 2015

The tech giant IBM has acquired Seattle-based private cloud provider Blue Box to strengthen and expand its OpenStack-based cloud computing offerings.


Founded in 2003 by Jesse Proudman, Blue Box has 65 employees who will soon be integrated into IBM but remain in Seattle. The company offers its clients the chance to use OpenStack cloud operations without actually implementing OpenStack software in their enterprise data. The company was funded by its founders and customer revenue through the nine years of its life. In 2012, the company raised $4.3 million through investors like Voyager Capital and other unknown individual investors. Recently, the company secured $14 million in Series B funding backed up by unnamed ‘integrated telecommunications provider’ and Voyager, Founder Collective.

Currently, IBM offers a solo tool for OpenStack-based private clouds, no matter its public infrastructure as a service or inside the enterprise data center. “The acquisition of Blue Box accelerates IBM’s open cloud strategy, making it easier for our clients to move to data and applications across clouds and adopt hybrid cloud environments,” said IBM General Manager of Cloud Services Jim Comfort.

The acquisition of Blue Box will help IBM to provide a public cloud-like experience inside the customer’s own data center, freeing companies of the trouble of traditional private cloud deployments. The acquisition sits in perfectly with the IBM’s strategy of giving multiple aspects of cloud services with increasing emphasis on a mix of on-premises and public or hybrid cloud services. It provides IBM SoftLayer services ¬†as infrastructure for the service, Bluemix as a platform-as-a-service for cloud-oriented software developers.

The Blue Box will fit right into the IBM’s growing OpenStack Services launched last month, that encourage the notion of hybrid cloud with work running on-premises in addition to the alike operations in SoftLayer infrastructure.”OpenStack is the foundation for all of its major cloud platforms – public, dedicated, private and managed services.” The acquisition is expected to permit IBM to provide “simplified and consistent access to public, dedicated and local cloud infrastructure,” states the statement announcing the deal. This acquisition of a Seattle-based company is yet another signal of the region’s leadership in technology that in escalating at the core of IT.