The International Business Machines Corporation (IBM) confirmed the purchase of the Canadian fintech company Expertus Technologies this month. This acquisition may come as a surprise to investors who don’t follow the strategy of IBM. The firm, however, is clear in its plan to play a major role in the market for financial services.
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In compliance with the definition of “Payments as a Service (PaaS)” the gained Expertus provides remedies. This is a recent strategy that illustrates the general pattern of contracting to eligible businesses by moving their maintenance services. Modern financial resources are required by many players, and most of them are unable to establish a department that is broad enough to satisfy their needs separately. The need for outsourcing in this field would then rise.
IBM will be able to incorporate a payment service into its cloud environment with the purchase of Expertus. Earlier, IBM acquired Spanugo, which owns cloud and hybrid applications data management technology. IBM purchased cybersecurity capabilities along with the Spanugo group that are currently deemed the most sophisticated, in particular automatic vulnerability identification, network setup, risk assessment and accelerated cloud deployment.
The management of IBM does not conceal its emphasis on the global banking market. In order to keep their services affordable and stable, banks spend over $100 billion annually on information technology improvements. A part of this budget is the expense of enhancing payment systems. But in any category, IBM is seeking to sell its offerings, which is a good indicator for long-term investors.
IBM is also in next-year plans of offloading some of its legacy business to better focus and enhance cloud computing expertise which remained its segment with highest-growth rate in recent years. Recent acquisition of Nordcloud in Europe was part of that expansion strategy.
International Business Machines Corporation (IBM) was up +0.1% to $124.82 in Monday session.