Top 10 IT industry mergers and acquisitions that grabbed the attention of CIOs in 2023

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mergers and acquistions

The past few years have witnessed a surge in mergers and acquisitions (M&A) within the IT industry, as companies seek to fortify their capabilities, gain a competitive edge, and stay ahead in an era defined by digital transformation. Chief Information Officers (CIOs), whose watchful eyes are fixed on the pulse of transformative M&As, are at the forefront of strategic decision-making, tasked with steering their organizations through a maze of technological advancements and market shifts.

Here are the 10 biggest mergers and acquisitions in the IT industry in 2023 that have caught the attention of CIOs.

  1. Broadcom and VMware

Announced in May 2023, Broadcom Inc. and VMware have successfully completed their deal valued at approximately $61 billion. Broadcom’s Software portfolio and VMware’s platform are set to offer enterprise customers an extended range of solutions to accelerate innovation and address intricate IT challenges. With the added flexibility, customers can seamlessly build, run, manage, connect, and protect applications in a diverse environment. The newly combined company, fueled by a joint commitment to technological innovation and significant research and development, is poised to deliver compelling benefits for customers and partners alike.

  1. OpenText and Micro Focus

By securing Micro Focus in a deal valued at around $5.8 billion, OpenText aims to empower enterprise professionals to enhance operational security, attain deeper insights into their information, and effectively navigate the complexities of a hybrid digital environment. Introducing an innovative suite of tools, this next generation of Information Management software aims to expedite digital transformation for organizations, fostering growth and simultaneously curbing costs.

  1. IBM and Apptio

IBM’s acquisition of Apptio Inc. for $4.6 billion not only propels the advancement of IBM’s IT automation capabilities but also empowers enterprise leaders to deliver heightened business value within their technology investments.

The acquisition aligns seamlessly with IBM’s ongoing commitment to and investment in hybrid cloud and artificial intelligence (AI), promising significant synergies across pivotal growth areas, including automation, Red Hat, IBM’s expansive AI portfolio, and IBM Consulting. Moreover, it strengthens partnerships with renowned systems integrators such as Accenture, KPMG, Deloitte, and EY.

  1. Ramp and

Ramp acquired, an AI-powered customer support platform, as part of its increased investment in artificial intelligence (AI). This move comes on the heels of Ramp’s introduction of pioneering AI solutions driven by GPT-4. The objective is to create innovative AI-powered products that enhance efficiency and effectiveness for businesses and their teams. With’s team, Ramp aims to spearhead projects focused on leveraging AI to discover novel ways of saving time and money for customers.

  1. Databricks and MosaicML

The Data and AI company, Databricks, acquired MosaicML, a prominent generative AI platform, with the aim to democratize generative AI for all organizations, providing them the capability to construct, possess, and safeguard generative AI models utilizing their specific data. The total valuation of this transaction, inclusive of retention packages, amounts to approximately $1.3 billion.

  1. Microsoft and Fungible

Microsoft acquired Fungible, a company that makes a type of data center hardware called a data processing unit (DPU), to speed up data center network and storage performance. Fungible offers a composable infrastructure for accelerating networking and storage performance in data centers using high-efficiency, low-power data processing units. This acquisition will help Microsoft improve its range of technologies and offerings, including reducing costs, increasing data center server density, and optimizing energy efficiency.

  1. DigitalOcean and Paperspace

Cloud hosting company DigitalOcean acquired the New York-based AI startup company Paperspace for $111 million in cash. The deal, which revolutionizes DigitalOcean’s offerings, enables the company to cater to the rapidly growing demands of the artificial intelligence and machine learning (AI/ML) industry and establish a strong foothold in the market. The acquisition sets the stage for a new era of innovation, where developers can leverage the combined power of both companies to push the boundaries of AI and reshape industries across the globe.

  1. Dell Technologies and Cloudify

Dell strengthened its cloud services division, focusing on DevOps, through the acquisition of Cloudify, an Israeli startup renowned for its cloud orchestration and infrastructure automation platform. Cloudify’s tools are widely employed by cloud architects and DevOps engineers for the effective management of containers, workloads, and various elements across hybrid environments.

  1. Cisco and Splunk

Tech giant Cisco acquired the well-established cybersecurity firm Splunk for an impressive $28 billion, marking the most substantial enterprise software deal this year. The strategic partnership between Cisco and Splunk is positioned to advance organizations beyond mere threat detection and response to the domains of threat prediction and prevention. This acquisition not only positions Cisco as a dominant force in the cybersecurity market but also solidifies its influence in two critical domains: Extended Detection and Response (XDR) through Cisco XDR and Security Information and Event Management (SIEM) through Splunk.

  1. Silver Lake and Qualtrics

Silver Lake, a global technology investment leader, in collaboration with Canada Pension Plan Investment Board (CPP Investments), has acquired Qualtrics, the pioneering force in the experience management (XM) software category. The all-cash transaction values Qualtrics at around $12.5 billion, marking a significant milestone for Silver Lake and underscoring its confidence in the Qualtrics team and its visionary approach. This landmark deal aligns with Silver Lake’s commitment to partnering with exceptional leaders as they shape and advance the next generation of enterprise software platforms, reflecting a culmination of years of strategic technology investments.

By staying attuned to these transformative developments, CIOs can navigate the complexities of the industry, leveraging strategic opportunities to drive innovation and secure a competitive edge for their enterprises.

Read next: Data analytics in 2024: 10 trends CIOs can expect to see

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