Ericsson (NASDAQ: ERIC) has taken out its checkbook again to acquire a majority stake in Apcera, a provider of platform as a service (PaaS) offering Continuum, a move it says will strengthen its position in the cloud market by extending its network approach into both service provider and enterprise cloud environments.
Continuum was created in 2012 as a PaaS platform that helps enterprises control the allocation and consumption of IT resources on premise and in the cloud.
As part of the acquisition, Ericsson will commit new funding toward developing next-gen technology, the sales channel and creating a broader ecosystem for the Continuum product line.
Ericsson said in a release that by adding Apcera's PaaS technology to its cloud offerings, it "will deliver complete cloud automation to run all workloads and use cases, while providing complete control for infrastructure."
Upon completion of the deal, which is expected to close in the fourth quarter after meeting customary closing conditions, Apcera will operate as a standalone company and will be consolidated financially under Ericsson's Segment Networks division.
Ericsson's timing could not be better. According to a Markets and Markets report, the PaaS segment will be worth $6.94 Billion by 2018.
- see the release
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