IBM acquires cloud software testing firm Green Hat

by CXOtoday Staff    Jan 05, 2012

IBM announced a definitive agreement to acquire Green Hat, a provider of software quality and testing solutions for the cloud and other environments.

Financial terms were not disclosed.

Green Hat is jointly headquartered in London, England and Wilmington, Delaware with a global 2000 customer base.

“This acquisition extends our leadership in driving business agility and software quality by changing the way enterprises can manage software development cost, test cycle time and risk,” said Kristof Kloeckner, General Manager, IBM Rational. “Green Hat’s application virtualization capabilities will help our customers accelerate their delivery of business critical software.”

Green Hat looks an interesting buy for IBM. According to recent industry reports, software testing represents more than 50 percent of overall development costs, and testing teams often spend upwards of 30 percent of their time managing the complexity of the test environment.

Green Hat helps customers improve the quality of software applications by enabling developers to leverage cloud computing technologies to conduct testing on a software application prior to its delivery.

Historically, to run simulation testing on a software program, a development team must construct an actual testing lab made up of both hardware and software. This time consuming and labor intensive process has become even more compounded with the short development cycle needed to compete in rapidly expanding markets such as those for smart phones and tablets. By using Green Hat’s solutions, a virtual test environment can be set up in a matter of minutes versus weeks, and for a fraction of the cost.

Upon close of the acquisition, Green Hat will join IBM’s Rational Software business.

This is the first deal for IBM this year. Earlier, IBM’s new head Virginia Rometty had pledged to spend $20 billion by 2015 to acquire new companies.

The company made six acquisitions in the last three months of which three were in December alone.