International Business Machines Corp. (NYSE:IBM) announced the purchase of Ustream, a live video streaming startup for $130 million. The acquisition completes IBM’s ambitious cloud-supported video streaming services platform, a new offering it hopes to offer soon for enterprises.
Lately, IBM has painstakingly acquired different technology units for end-to-end video streaming services. It acquired Clearleap for multi-device video delivery, Cleversafe, for its data storage selling business and Aspera for its file-transfer software development capabilities.
Ustream was founded in 2007 and is based in San Francisco. It was funded , nearly $50 million, at various stages by DCM ventures, SoftBank Group Corp and others.
International Business Machines Corp. (NYSE:IBM) is set to offer expansive video services allowing business to reach more devices, according to Braxton Jarratt, the former CEO of Clearleap.
Jarratt will head the Cloud video services platform now for IBM. Researchers forecast the cloud-video services software industry is expected to grow at a phenomenal rate. They expect it to reach $105 billion by 2019.
Stream High Quality video to any device
The key focus of the cloud-based video services is to build the capability to stream video on any device at ‘very high quality,’ according to Jarratt.
The new head of the video-services unit claimed that the unit will soon provide services for big video-streaming giants such as HBO or NFL to reach more devices.
Streaming video market surge
Lately, a number of technology companies are willing to explore revenue opportunities in streaming video services and software.
Prior to IBM’s acquisition of Ustream, larger cloud services providers like Amazon.com, Inc. (NASDAQ:AMZN) have already set up shop.
Ustream’s close competitor Twitch is already owned by the mega-cloud services provider, since 2014. The acquisition had cost the ecommerce giant $970 million.
Similarly micro-blogging site, Twitter Inc (NASDAQ:TWTR) invested in Periscope for video streaming capabilities.
In the meanwhile, Facebook Inc (NASDAQ:FB) has added more video-based features on its platform, even as Snapchat improved its own video services.
International Business Machines Corp. (NYSE:IBM) interest in Ustream dates back to 2014, when it made Ustream’s services available on its cloud platform.