IBM is broadening its Big Red reach with its announced intention to acquire Applications Software Technology LLC, a global Oracle consultancy.
Headquartered in Lisle, Illinois, Applications Software Technology (AST) specializes in business transformation expertise with Oracle Cloud Applications (OCA), including for clients in the public sector such as local government and K-12 education. This sector’s cloud transformations frequently face issues such as difficulty transitioning legacy systems, scarce skills or high security and compliance requirements.
The acquisition is aimed to help further enhance IBM’s Oracle solutions to help public sector and other clients across North America, the UK and Ireland to address such complexities and achieve long-term digital transformations with OCA. The deal also helps build on IBM’s 2024 acquisition of Accelalpha, expanding Big Blue’s ability to help clients deploy, manage and drive value from their Oracle cloud solutions.
“Public sector clients’ cloud transformations often require a consulting partner with industry, domain and technology expertise,” said Kelly Chambliss, Senior Vice President, IBM Consulting, Americas. “The acquisition of Applications Software Technology will boost IBM’s public sector and Oracle Cloud Application skills to help clients confidently navigate their business transformations.”
Applications Software Technology’s large team of consultants brings expertise across the OCA Suite, particularly around Oracle Fusion Cloud Enterprise Resource Management (ERP) including Enterprise Performance Management (EPM), Oracle Cloud Human Capital Management (HCM), and Oracle Fusion Configure, Price, Quote (CPQ), as well as Oracle Cloud Infrastructure (OCI), JD Edwards, and NetSuite. With teams across the US, UK, Canada and India, AST also brings expertise and partnerships with Salesforce and MuleSoft, specializing in public sector solutions and more.
The consultancy has been an Oracle partner since 1996 and a leading provider of Oracle solutions covering areas such as business process redesign and Oracle Cloud deployment. In addition to its strong public sector presence, AST also serves commercial clients in the manufacturing, energy and consumer packaged goods industries.
“We are excited to join IBM and open up new opportunities for our people and expand transformative solutions to deliver business outcomes for our customers,” said Justin Winter, CEO, Applications Software Technology. “Applications Software Technology and IBM have complementary capabilities, client relationships, service offerings and values around our people, innovation and commitment to client success. Together, we will continue to grow in the market for cloud transformation solutions.”
Notable past acquisitions contributing to AST’s growth include Symatrix Limited, 9EDGE Inc. and Computer Technology Resources Inc. The consultancy is currently a portfolio company of funds managed by Recognize Partners LP. The acquisition is expected to close in the first quarter of 2025, subject to customary closing conditions and regulatory approvals, upon which Applications Software Technology will join IBM Consulting. Financial details of the transaction were not disclosed.
What this means for ERP Insiders
Strengthening Public Sector Cloud Transformations: Applications Software Technology (AST) specializes in OCA solutions for public sector clients, who often struggle with legacy system transitions, skill shortages, and high security and compliance requirements. AST brings deep knowledge of the Oracle Fusion Cloud suite, including Enterprise Resource Management (ERP), Enterprise Performance Management (EPM), Cloud Human Capital Management (HCM), and Configure, Price, Quote (CPQ). Additionally, AST’s expertise spans Oracle Cloud Infrastructure (OCI), JD Edwards, and NetSuite. With teams across the US, UK, Canada, and India, AST also bolsters IBM’s capabilities in Salesforce and MuleSoft integrations, particularly for public sector clients.
Building on IBM’s Cloud Transformation Strategy: IBM has been actively strengthening its cloud transformation portfolio, following its 2024 acquisition of Accelalpha. The AST acquisition further reinforces IBM’s ability to support Oracle cloud deployment, process redesign, and digital transformation. AST’s history as an Oracle partner since 1996 has positioned it as a leader in Big Red solutions.
A Strategic Move for Future Growth: IBM’s acquisition of AST highlights its commitment to advancing cloud transformation solutions and enhancing Oracle capabilities for both public and commercial clients. With complementary strengths in consulting, service offerings, and cloud expertise, the combined IBM-AST team is well-positioned to drive digital transformation success across industries.
