How Oracle Consultancy Will Enhance IBM’s Cloud Capabilities

Public sector organisations face mounting pressure to modernise their technology infrastructure as digital service demands increase across the world.
The transition to cloud computing presents challenges for government agencies and educational institutions, from complex legacy systems to stringent security requirements.
However, this scene has created opportunities for technology consultancies specialising in public sector digital transformation.
IBM has announced plans to acquire Applications Software Technology LLC (AST LLC), an Oracle consultancy and the transaction, set to close in Q1 2025, marking IBM's second Oracle-focused acquisition following its purchase of Accelalpha in 2024.
IBM targets public sector Oracle Cloud expansion
AST, headquartered in Lisle, Illinois, provides Oracle Cloud Applications services to government and educational institutions across North America, the UK and Ireland.
The firm specialises in Oracle Fusion Cloud Enterprise Resource Planning (ERP) systems, which handle organisations' financial operations and Oracle Cloud Human Capital Management (HCM) software for personnel management.
It also brings expertise in Enterprise Performance Management (EPM), a subset of ERP systems used for budgeting and forecasting, alongside capabilities in Oracle Cloud Infrastructure (OCI), the computing platform underpinning Oracle's cloud services.
AST’s portfolio includes Configure, Price, Quote (CPQ) software used for sales automation, as well as JD Edwards enterprise software and NetSuite, Oracle's cloud-based business management platform.
Kelly Chambliss, Senior Vice President of IBM Consulting Americas, says: "Public sector clients' cloud transformations often require a consulting partner with industry, domain and technology expertise."
More broadly, the acquisition addresses challenges in public sector cloud adoption, including legacy system migration and compliance requirements, as these issues present barriers for local government and K-12 education institutions transitioning to cloud-based systems.
Oracle partnership expansion strengthens IBM's cloud offering
AST maintains operations across the US, UK, Canada and India, having expanded through acquisitions including Symatrix Limited, 9EDGE and Computer Technology Resources since being partnered with Oracle, the enterprise software provider, since 1996.
The transaction represents an expansion of IBM's open ecosystem strategy, which focuses on combining technologies and expertise from multiple partners to address client requirements.
AST also brings partnerships with Salesforce, the customer relationship management platform, and MuleSoft, the integration software provider.
Justin Winter, CEO of AST, says: "We are excited to join IBM and open up new opportunities for our people and expand transformative solutions to deliver business outcomes for our customers."
Public sector expertise drives acquisition strategy
The deal expands IBM's capabilities further than the public sector, adding AST LLC's commercial clients in manufacturing, energy and consumer goods.
Furthermore, the firm provides business process redesign services alongside Oracle Cloud deployment expertise.
AST currently operates as a portfolio company of funds managed by Recognize Partners LP, a technology services investment firm - and upon completion of the acquisition, the company's consulting teams will join IBM Consulting.
The transaction additionally builds on IBM's Oracle expertise, recognised by research firm IDC.
IBM received a Leader designation in the 2023 IDC MarketScape for Oracle Implementation Services Ecosystem Worldwide, reflecting the strength of the partnership between the two technology providers.
IBM's relationship with Oracle spans four decades, positioning the company to support clients' digital transformation initiatives.
Kelly says: "The acquisition of Applications Software Technology will boost IBM's public sector and Oracle Cloud Application skills to help clients confidently navigate their business transformations."
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