IBM To Acquire Instana


IBM (NYSE:IBM) is to acquire Instana, a Chicago, IL-based application performance monitoring and observability company.

The financial details of the deal were not disclosed.

With the acquisition of Instana, IBM will allow companies to overcome the challenge of managing application performance across multiple teams, and across 2 to 15 clouds, on average. 

The deal further advances IBM’s Hybrid Cloud and AI strategy and strengthens its AI-powered automation capabilities, which already included:

–  the launch of IBM Watson AIOps earlier this year, IBM’s AI offering for automating how enterprises self-detect, diagnose and respond to IT anomalies in real time;
–  the acquisition of WDG Automation to provide clients with broader access to intelligent automation through software robots;
–  its expanded partnership with ServiceNow to develop a joint solution to help companies reduce operational risk and lower costs by applying AI to automate IT operations;
–  and continued updates to IBM Cloud Pak for Automation designed to help companies drive innovation across their expanding IT environments and accelerate digital transformation.

Led by Mirko Novakovic, co-founder and CEO, Instana provides businesses with capabilities to manage the performance of complex and modern cloud-native applications no matter where they reside – on mobile devices, public and private clouds and on-premises, including IBM Z.  Its enterprise observability platform automatically builds a deep contextual understanding of cloud applications and provides actionable insights to indicate how to best prevent and remedy IT issues that could damage the business or reduce customer satisfaction — such as slow response times, services that aren’t working or infrastructure that is down.

Once Instana’s capabilities are integrated into IBM, companies will be able to feed these insights into Watson AIOps. The information could then be compared to a baseline of a normal operating application, with AI triggering alerts to resolve issues quickly before negative impacts to that transaction or activity. This can help eliminate the need for IT staff to manually monitor and manage applications, freeing these employees to focus on innovation and higher value work. 

Headquartered in Chicago, Instana also has a development center in Germany.



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