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Home / SmartTech / IBM sells Lotus Notes / Domino business to HCL for $ 1.8 billion – TechCrunch

IBM sells Lotus Notes / Domino business to HCL for $ 1.8 billion – TechCrunch



IBM announced last night that it is selling the final components of its 1995 acquisition of Lotus for $ 1.8 billion to the Indian company HCL.

IBM then paid 3.5 billion dollars for Lotus. The big pieces here are Lotus Notes, Domino and Portal. This has long been a large part of IBM's business, but last year Big Blue began selling the development part to HCL, maintaining control over sales and marketing.

This announcement marks the end of the line for IBM's involvement. With the development of the platform beyond his control and the need for money, after spending $ 34 billion on Red Hat, IBM may simply have decided that it would not make sense to keep any part of it internal.

It sees an opportunity to expand the Notes / Domino business, and it takes this buy. "The extensive implementations of these products provide us with a great opportunity to reach and serve thousands of global companies in a variety of industries and markets," said C Vijayakumar, President and CEO of HCL Technologies, in a statement announcing the deal

Alan Lepofsky, an analyst with Constellation Research, who has a keen eye on enterprise collaboration, says the sale could be a fresh start for software that IBM has not been very attentive to for some time. "HCL is more interested in Notes / Domino than in IBM for a decade. They invest a lot and try to rejuvenate the brand, "Lepofsky told TechCrunch.

Although this software has been around for a long time, Notes and Domino are still in use in many areas of the organization, and this is especially true of EMEA (Europe, Middle East and Africa) and AP (Asia Pacific), Lepofsky said ,

He added that with this sale, IBM seems to be leaving the field of collaboration apparently completely. "It looks like IBM is done with the game," he said.

This step makes sense for IBM, which is moving in a different direction as it expands its cloud business. In particular, the October acquisition of Red Hat shows that the company wants to leverage private and hybrid cloud implementations, and legacy software such as Lotus Notes and Domino does not play a significant role in the world.

subject to regulatory approval, it is expected to close by mid-next year.


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