Business Cloud News
CSC says its acquisition of ServiceMesh will allow it to broaden its appeal to enterprises moving to the cloud

CSC says its acquisition of ServiceMesh will allow it to broaden its appeal to enterprises moving to the cloud

US-based Computer Sciences Corporation announced Thursday that it has signed a definitive agreement to acquire ServiceMesh, a startup providing enterprise cloud management services, for an undisclosed sum.

John Madden, practice leader, IT services at Ovum said the move marks a key milestone in the development of CSC’s cloud strategy.

CSC is an enterprise software company that has been slowly transitioning its offerings into the cloud, offering a number of applications as a service. The company says its acquisition of Service Mesh, a California-based startup that provides cloud orchestration and management tools will give CSC a stronger foothold in the enterprise cloud arena.

The future of next-generation IT infrastructure will involve a set of multiple clouds utilized simultaneously by enterprises,” said Mike Lawrie, CSC President and chief executive officer. “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.”

“As an agent for cloud management, ServiceMesh is right at the point of consumerization for next-generation enterprise applications,” said Dan Hushon, chief technology officer CSC. “With ServiceMesh, we will empower an ecosystem of enterprise software providers by lowering the friction for companies to execute a multi-vendor hybrid cloud strategy while maintaining central governance, policy and administration.”

Eric Pulier, ServiceMesh’s chief executive officer said the acquisition will further enable CSC to offer solutions to businesses that enable them to operate their IT functions at both lower complexity and cost. “Bringing ServiceMesh and CSC together creates a true leadership position in IT transformation,” he said.

The past couple of years have seen the growth the enterprise cloud management space, and CSC will now be competing with a number of incumbents – Citrix, Abiquo and RightScale for instance – that offer very similar features across hybrid cloud estates.

John Madden, Practice Leader, IT Services at Ovum says the move marks a significant turning point for CSC, which has been reorganising for the better part of the past two years to develop a broader set of services catering to the enterprise market.

“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,” Madden 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 says that ServiceMeshe’s Agility Platform, which provides single-pane cloud management and orchestration functionality across public and private clouds, will allow CSC to leverage new capabilities in a quickly growing market – particularly as businesses begin using multiple cloud-based platforms alongside on-premise infrastructure.

“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,” Madden says.

ServiceMesh is the latest in a series of acquisitions intended to bolster CSC’s enterprise offerings. In August the company acquired Infochimps, a big data platform as a service provider that enables businesses to build open source analytics applications. And earlier this month the company also acquired 42Six, a software development company specialising in big data processing and analytics applications.