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Open Source Continues to Get Attention from Technology Players

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IBM’s recent acquisitions show the company has increased investments in open source

Previously in this series, we discussed in detail how IBM’s (IBM) acquisition of StrongLoop is expected to benefit IBM in various areas. It’s worth noting that StrongLoop uses open source JavaScript programming language, or Node.js, to provide services and application development software to enterprises. The cloud revolution has acted as a catalyst to the increased adoption of open source technologies.

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In July 2015, IBM announced the acquisition of Compose, which operates multiple types of NoSQL databases as cloud services. Compose also supports other databases like MongoDB, Elasticsearch, Redis, RethinkDB, and PostgreSQL. Compose can run these databases on various clouds like Amazon’s (AMZN) Amazon Web Services (or AWS), DigitalOcean, and IBM’s SoftLayer.

IBM’s Cloudant, a company it acquired in 2014, also operates in the database as a service (or DBaaS) market. It supports a database based on open source CouchDB.

You can read Open-Source Databases Are Set to Overtake Commercial Databases to know why developers are increasingly heading toward open source databases.

Technology players, including IBM, are increasingly heading toward open source

In June 2015, IBM announced the acquisition of Blue Box, which provides private cloud-as-a-service based on OpenStack technology. Also in June 2015, Cisco (CSCO) announced the acquisition of Piston Cloud Computing, a company that manages and deploys private clouds on open source technology. The same month, EMC announced the acquisition of Virtustream, a company focused on mission critical applications such as SAP (SAP) business applications or SAP HANA for enterprises.

In late 2014, EMC (EMC) and Hewlett-Packard (HPQ) announced the acquisition of Cloudscaling and Eucalyptus Systems, respectively. Cloudscaling is a company that developed OpenStack-based private cloud technology. Eucalyptus Systems provides open source software for building private and hybrid enterprise clouds. Cloudscaling was one of the first startups to distribute OpenStack open source cloud software.

All these acquisitions point to rising interest and investments by technology players in open source technology. You can read Why the OpenStack Space Is Seeing a Recent Acquisition Spur to know more about the trends in OpenStack space.

If you’re bullish about Cisco’s prospects, you could invest in the PowerShares QQQ Trust, Series 1 ETF (QQQ). QQQ invests about 3% of its holdings in Cisco.

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