IBM Buys Another Consultancy for Oracle Cloud ExpertiseIBM Buys Another Consultancy for Oracle Cloud Expertise

IBM is once again beefing up its Oracle Cloud expertise, this time with the acquisition of Applications Software Technology.

Last September, Big Blue bought Accelalpha for its Oracle Cloud skills, especially around supply chain, logistics and finance.

IBM's strategy reflects a growing trend within the cloud computing market: large names snapping up smaller cloud providers that bring specialized knowledge to the table. As just two recent examples, CDW snapped up Mission Cloud for its Amazon Web Services practice at the end of 2024, and TD Synnex bought IPSense Cloud Migration in September for its cloud migration focus. Insight Enterprises appears to have kicked off the reseller/integrator-cloud service provider pairing trend in December 2023 when it bought Google Cloud-only SADA.

Applications Software Technology − comprising the firm itself, along with its subsidiaries 9Edge, Computer Technology Resources and Symatrix − will join IBM Consulting once the deal closes. The Illinois-based company deploys Oracle Cloud Applications for the public sector, including state and local governments, and K-12 education. Together, IBM Consulting and Applications Software Technology will deliver Oracle Cloud-based digital transformation to clients in the United States, the U.K. and Ireland.

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Helping Public Sector Institutions ‘Confidently Navigate’ Transformation

Transitioning to the cloud is particularly tough for the public sector, IBM said, due to the ubiquity of legacy systems and the dearth of skills. Demanding security and compliance requirements further put a damper on many public sector institutions’ ability to shift to cloud computing.

“Public sector clients’ cloud transformations often require a consulting partner with industry, domain and technology expertise,” said Kelly Chambliss, senior vice president of IBM Consulting, Americas. “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.” 

IBM Consulting's Kelly Chambliss

Applications Software Technology’s team is well-versed in the Oracle Cloud Applications Suite, especially Oracle Fusion Cloud Enterprise Resource Management, which includes Enterprise Performance Management, Oracle Cloud Human Capital Management, and Oracle Fusion Configure, Price, Quote. The consultants have additional experience in Oracle Cloud Infrastructure, JD Edwards, NetSuite, Salesforce and MuleSoft, IBM said.  

Longtime Partnerships with Oracle Cloud

Related:CDW Bolsters AWS Practice with Mission Cloud Acquisition

Applications Software Technology has partnered with Oracle since 1996; IBM says it has worked with Oracle for nearly 40 years. In addition to its public sector reach, Applications Software Technology also serves commercial clients in manufacturing, energy and consumer packaged goods. 

"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,” said Justin Winter, CEO of Applications Software Technology. “Applications Software Technology and IBM have complementary capabilities, client relationships, service offerings and values around our people, innovation and commitment to client success. Together, we will continue to grow in the market for cloud transformation solutions.” 

Applications Software Technology's Justin Winter

Applications Software Technology runs teams throughout the United States, the U.K., Canada and India. It is privately owned as a portfolio company managed by Recognize Partners LP. IBM did not disclose financial terms of the transaction. Expect the deal to close in the first quarter.