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IBM Acquires Optevia, Expanding Role as Solutions Provider for Public Sector Clients

The software as a service market is heating up, as Optevia, a company focusing on government clients, is the latest in a large number of IBM acquisitions.

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Optevia, a privately-owned SaaS systems integrator, specializing in Microsoft Dynamics CRM solutions for public sector organizations, will join IBM Global Business Services.

The giant has bought Optevia for an undisclosed sum in a deal announced Friday morning. UK-based Optevia will be folded into IBM Global Business Services, which is seeing staff axed as part of a global round of cuts.

"By acquiring Optevia, IBM will be able to provide Public Sector clients and prospects with a range of unique, industry-focused CRM-based solutions," said Joanna Davinson, IBM public sector leader – Europe. "This strategic acquisition will help strengthen IBM as a SaaS provider and Global Software Integrator," she added.

IBM has made at least 151 purchases, with many concentrating on increasing SaaS with some acquisition, reportedly for billions. While IBM reported over $22 billion in revenue last quarter, its sales have been decaying steadily for years now, which has created a huge struggle in enhancing growth.

Despite giant Salesforce.com’s current market-leading position, there is a rapid growth in competition within the field of CRM. Together with IBM’s announcement, Oracle has implied that it intends to take on Salesforce.com. In Oracle’s earnings report, CTO Larry Ellison underlined that the company’s efforts "should make it easy for Oracle to pass Salesforce.com and become the largest SaaS and PaaS cloud company in the world."

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Published at DZone with permission of Omri Erel, DZone MVB. See the original article here.

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