IBM snaps up SXiQ

IBM has acquired Melbourne-based digital transformation services company SXiQ to enhance its consulting capabilities in the market.

The new acquisition provides additional hybrid and multi-cloud expertise, further aiding IBM Consulting’s enterprise strategy.

SXiQ specialises in cloud applications, platforms and cyber security, providing expertise in transforming and migrating enterprise workloads on cloud platforms including Amazon Web Services and Microsoft Azure. The company came about in 2016 following the acquisition of Southern Cross Computer Systems (SCCS) by a private consortium led by current managing director, John Hanna and Matt McGuire, with the company subsequently rebranding to SXiQ.

The SXiQ brand and team will all be retained, with the extra resources and depth of IBM’s clients, people and systems set to amplify future growth. 

“Our digital transformation experience and track record of client delivery on leading cloud platforms will send a strong signal affirming our and IBM’s commitment to clients’ successful journey to cloud,” Hanna said. 

“Our clients can now take advantage of IBM’s broad capabilities around ERP systems, data and analytics, machine learning and artificial intelligence, deep platform partnerships and global delivery capabilities, allowing us to broaden the transformational capabilities we can bring to our customers, ensuring they can take their own digital transformation further and deeper.”

IBM A/NZ general manager Katrina Troughton said the SXiQ acquisition is one of the first since the recent ‘spin off’ of the Kyndryl business and clearly demonstrates the focus of IBM – bringing the value of open hybrid cloud and AI to clients globally.

“IBM is constantly seeking to design and discover industry leading technology and talent that best serves the needs of our clients. This includes Australian innovation and expertise,” she said. “We are thrilled to welcome John and the SXiQ team to IBM, expanding IBM Consulting’s hybrid and multi-cloud capabilities.”

The latest deal marks IBM’s twentieth acquisition – and tenth consulting acquisition – since Arvind Krishna took hold as the vendor’s CEO, adding to the significant investments the company is making in its hybrid cloud and AI strategy.

“Companies are very clearly deploying hybrid cloud strategies as interoperability, security, compliance and avoiding vendor lock-in are top of mind,” IBM Consulting hybrid cloud services senior vice president John Granger said. 

“IBM’s acquisition of SXiQ brings additional hybrid and multi-cloud expertise that is at the core of open innovation for clients.”

Financial terms of the deal haven’t been disclosed. 

Earlier this year, IBM snapped up Finnish company Nordcloud, US-based Taos and US-based BoxBoat.