Atbatt

An increasingly popular technology that helps IBM cut costs by enabling access to software online.Terms of the deal were not disclosed, but Monday’s announcement underscores International Business Machines Corp’s continued effort to expand in software and services while retreating from sales of commoditized hardware.

Analysts said they expect deals in cloud computing by IBM and such other technology vendors such as Hewlett-Packard Co, Cisco Systems Inc and EMC Corp.”I think software as a service will continue to undergo a shakeout, absolutely,” said Forrester Research analyst Liz Herbert. “There are lots of these small providers in spaces like integration and billing and provisioning …

IBM does not always announce terms of individual deals but has said it spent a gross $1 billion on acquisitions in the first quarter. For all of 2009, it spent $1.5 billion, including $1.2 billion cash to buy business analytics company SPSS Inc.

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