ServiceMesh deal augments CSC’s overall cloud initiative: Ovum

ServiceMesh deal augments CSC’s overall cloud initiative: Ovum

CSC acquires Cloud start-up ServiceMesh for an undisclosed sum

CSC has continued its Cloud transformation with the acquisition of startup ServiceMeshAll on ServiceMesh for an undisclosed sum.

It is the third deal for the Virginia-based company in as many months and was made possible by cost-cutting and shedding some business in order to build up resources and free cash.

ServiceMesh is a Cloud services management startup that raised about $15 million from Ignition Partners in 2011 and specialises in helping customers manage applications they run on different computing platforms.

CSC chief executive Mike Lawrie said the strategic acquisition enabled the company, which has about 87,000 employees and a market value of $7.6 billion, to continue its transformation to a next-generation IT company that helps its clients migrate their applications into Cloud computing environments.

“The future of next-generation IT infrastructure will involve a set of multiple clouds utilized simultaneously by enterprises,” he said

“ServiceMesh allows us to catalogue enterprise applications and orchestrate those applications dynamically to run in different Clouds based on the characteristics of the applications. From our unique position as an independent global technology company, we will integrate those workloads for our clients through our portfolio of services and technologies.”

Ovum analyst, John Madden, said the company had been true to its word after it announced 20 months ago that it would reinvest in strategic areas to spark additional growth.

"The vendor’s announced acquisition of ServiceMesh, a 140-person, privately funded cloud management and brokerage company, is CSC’s third deal in as many months – made possible by cost-cutting and shedding some business in order to build up resources and free cash," he said.

"This deal augments CSC’s overall cloud initiatives, particularly in how it accelerates CSC’s own internal IP efforts around cloud orchestration and management.

Madden said ServiceMesh, with its Agility Platform, allowed enterprise and public sector clients to identify which workloads should be deployed and managed in either private or public Cloud models, and provided a single management and brokerage layer for hybrid cloud environments.

"The platform, which is used by customers such as Swisscom and the Commonwealth Bank of Australia, also provides a single point for enterprise-wide access, control and governance of cloud services," he said.

"With this deal, CSC will now have capabilities to address two key elements that must be addressed as the cloud services market continues to grow: the ability to size, deploy, scale and manage hybrid Cloud environments, and the need for enterprises to have proper cloud governance within their organizations.”

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Tags cscServiceMeshIgnition PartnersCSC chief executive Mike LawrieOvum analyst John Madden

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