If you’ve ever watched live streaming video online, chances are, you’ve probably used USTREAM. IBM has just announced that it has purchased USTREAM, a pioneer in cloud video delivery.
IBM has also announced plans to create a cloud video unit with USTREAM’s technology being centerpiece. The move to buyout USTREAM coincides with other IBM acquisitions in the cloud video field. Acquisitions such as IBM’s buyout of Clearleap, Cleversafe and Aspera, to name a few.
IBM claims that the cloud-based video services delivery market could be worth as much as $105 billion by the end of this year. When you look the consumer appetite for cutting the cord and getting video delivered to their devices on-demand, services like USTREAM could rapidly become one of IBM’s most popular cloud assets.
“Video has become a first-class data type in business that requires accelerated performance and powerful analytics that allows clients to extract meaningful insights,” says Robert LeBlanc, the SVP for IBM Cloud.
“Aligning our expansive video and cloud innovations into an integrated unit will create opportunities for clients to take advantage of this medium in the most strategic way possible,” LeBlanc added.
IBM claims to have the rights to over 1,000 patents related to the delivery of video over the internet. Experts say that Big Blue’s first patent in IP based video was submitted back in 1995.
While the IBM press release mentions that financial terms surrounding the deal have not been disclosed, Silicon Valley Business Journal is reporting that IBM has paid $130 million for USTREAM. The same reports says that USTREAM had raised $60M in funding to date.
USTREAM has become a household name in the cloud video services delivery market. USTREAM’s customers include Nike, Facebook, the Discovery Channel and others.