Big Blue makes Classic SMB acquisition

IBM has moved to boost its SMB offering with the acquisition of local player Classic Blue.

The buy will see Big Blue pick up additional business continuity and recovery skills and a string of recovery centres in Adelaide, Brisbane, Melbourne and Sydney.

Classic Blue also offers IBM extra security and systems solutions, managed services and professional services and a client base of around 300 SMBs.

The terms of the acquisition were not disclosed.

For IBM Global Services general manager David Burns, the acquisition was predicated on a growing raft of IT pressures on small businesses.

These included a rise in the number and complexity of security attacks and increased access and availability requirements.

For Classic Blue executive chairman, Adrian Bogatez, the decision to be acquired made sense for the company’s customers, staff and IBM.

“We’ve worked with IBM for sometime now so we’ve had exposure to their processes and relationships,” he said. “In working with them to take the next step with the business.”

Classic Blue also has relationships with Cisco, HP, Juniper and Sun.

The company’s 62 staff would remain with the company as would Bogatez, who is staying on to ensure a smooth integration process.

Bogatez said he was not concerned about cultural differences or the loss of the company’s identity under Big Blue.

“The main reason for the acquisition is that Classic Blue has credibility and a brand in the SMB space,” he said. “The name will continue but with the financial backing of IBM.”

Classic Blue’s acquisition follows the March 2004 purchase of Cerulean, then Logicalis, which boosted IBM’s mid-market IP communications portfolio.