Ericsson takes big bite in Apcera, strengthens PaaS cloud capabilities

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.

For more:
- see the release

Related articles:
Ericsson buys MetraTech, extends OSS reach into transport, utilities
Ericsson acquires Fabrix Systems, adds cloud-based storage to TV portfolio
Telstra furthers pact with Ericsson, Ciena to get ready for SDN, NFV

FREE DAILY NEWSLETTER

Like this story? Subscribe to FierceTelecom!

The Telecom industry is an ever-changing world where big ideas come along daily. Our subscribers rely on FierceTelecom as their must-read source for the latest news, analysis and data on the intersection of telecom and media. Sign up today to get telecom news and updates delivered to your inbox and read on the go.