Computer hardware, software and services giant IBM this week announced it has acquired Cast Iron Systems. The move is expected to give the company the technology and experience it requires to connect customers' cloud-based and in-house applications.

IBM expects the global cloud computing market to grow at a compounded annual rate of 28 percent from $47 billion in 2008 to $126 billion by 2012. 

But a key challenge that businesses face in successfully adopting cloud delivery models is integrating the disparate systems already running in their data centers with new, cloud-based applications. 

In the past, this involved time-consuming and resource-draining coding work. By contrast, Cast Iron Systems will offer IBM customers a platform to integrate cloud applications using a physical appliance, a virtual appliance or a cloud service, and from providers including Salesforce.com, Amazon, NetSuite, ADP, SAP and JD Edwards, according to the company release.

“The integration challenges Cast Iron Systems is tackling are crucial to clients who are looking to adopt alternative delivery models to manage their businesses,” said Craig Hayman, general manager, IBM WebSphere.  “The combination of IBM and Cast Iron Systems will make it easy for clients to integrate business applications, no matter where those applications reside.  This will give clients greater agility and as a result, better business outcomes,” he said.