Data Center Finance: Ericsson Acquires Sentilla

Ericsson announced in mid-October that it had acquired Sentilla for an undisclosed sum.

Sentillia creates data center infrastructure and visibility software and delivers optimal performance, real-time workload management and intelligent deployment decision-making solutions to complex, multi-technology environments. Ericsson hopes the purchase will create new opportunities for revenue creation in the enterprise segment. Along with the acquisition, Ericsson has signaled intentions to combine its cloud management and automation platform with Sentilla's monitoring and analytics system in order to expand Ericsson's managed IT capabilities and its appeal outside the telecom vertical.

Sentilla CEO Mike Kaul explained that service providers looking to continue delivering compelling enterprise offerings benefit from the combination of Sentilla's capabilities and key Ericsson services. The functionality supports dynamic optimization of workloads across physical, virtual and cloud infrastructures.

"As more businesses leverage mobility and cloud-based applications, the unique combination of automation and just-in-time intelligence that we can provide enables necessary agility and responsiveness," said Elsabetta Romano, vice president and head of OSS and service enablement at Ericsson. "As a result, Ericsson helps drive increased operational and financial efficiency."

Ericsson has been aggressively targeting cloud initiatives over the past year, including strong increases in spending related to cloud research and development and a growing focus on introducing both cloud-enabled technologies and cloud-based services.

The company also recently acquired a majority stake in tech startup Apcera, which providers multi-workload deployment and management platform-as-a-service. In February, Ericsson introduced a cloud-based unified communications solution that allows service providers to offer it as a service to their enterprise customers of all sizes.