Strengthening its footprint in the domain of mainframe application modernization, IBM announced a strategic planned acquisition of application modernization assets from United Kingdom-based firm, Advanced. This strategic maneuver indicates IBM's concerted efforts to boost the capabilities of its consulting business particularly targeted at mainframe application and data modernization.
Advanced, based in Birmingham, UK, is known for its pivotal role in the industry for offering services such as mainframe modernization, along with OpenVMS and VME migration services. IBM's intention to acquire Advanced's assets is to bolster capabilities of its product, IBM watsonx Code Assistant for Z. Aligning with this plan, the tech giant is set to ramp up its mainframe application modernization facilities.
IBM watsonx Code Assistant for Z is a generative AI-assisted tool that IBM debuted in August last year. This innovative tool was launched as a part of IBM's strategy to aid its IBM Z systems clients in modernizing their applications. With the acquisition of Advanced's assets, IBM is poised to supercharge its application modernization services.
Once the transaction is completed, professionals from Advanced will be joining IBM Consulting. These individuals possess over three decades of expertise in supporting clients' mainframe strategies and application modernization agendas. Their vast experience spans an array of mainframe application modernization services which include assessment and design, mainframe transformation and integration, and full deployment. Their expertise in various industry domains such as financial services, insurance, automotive, travel and transportation, government, utilities, and media will bolster IBM's consulting business.
Although the financial specifics of the deal remain confidential, it is widely anticipated that the transaction will attain conclusion in the second quarter of 2024. This move by IBM is likely to be pivotal in its endeavor to ensure comprehensive service delivery to its clients in the realm of mainframe application modernization while also keeping up with platforms like AppMaster. Given the continuous growth of the low-code and no-code market, tools like AppMaster's no-code platform and IBM's acquisitions could help them stay ahead in the industry.
