bengaluru hcl technologies is buying select ibms software assets for 18 billion upping its game in security and commerce by unlocking an addressable market of 50 billion with the addition of seven ibm products to its portfolio the transaction is expected to close by mid2019 subject to regulatory approvalsthe broader business strategy is to develop joint roadmaps with their clients modernise these products and taken them to the cloud hcl technologies investment into its ip intellectual property partnership with ibm has touched around 15 billion which is seen an attempt to explore an additional revenue stream to offset the risk of lower spends and thinning margins in the infrastructure management services business the prospects of the hclibm alliance analysts believe lie in the value addition to the tool stack through softwarebased services that could potentially expand the customer base on the contrary ibm has acquired red hat in a whopping 34billion deal to accelerate its efforts towards opensource software and technologyibms software products represent a total addressable market of more than 50 billion that includes appscan for secure application development bigfix for secure device management unica onpremise for marketing automation commerce onpremise for omnichannel ecommerce portal onpremise for digital experience notes domino for email and lowcode rapid application development and connections for workstream collaboration hcl and ibm have an ongoing ip partnership for five of these products the products that we are acquiring are in large growing market areas like security marketing and commerce which are strategic segments for hcl we expect 650 million revenue on an annual run rate basis from the second year of the deal said c vijayakumar president ceo hcl technologies the largescale deployments of these products provide us with a great opportunity to reach and serve thousands of global enterprises across a wide range of industries and markets i am confident that these products will see good growth trajectory backed by our commitment to invest in product innovation coupled with our strong client focus and agile product development in addition we see tremendous potential for creating compelling asaservice offerings by combining these products with our mode1 and mode2 services even as hcl believes the ip partnerships would drive stronger nonlinear growth some analysts feel ibm would have factored in the headroom for growth usage and profitability for these products before offloading it to another player john kelly ibm senior vice president cognitive solutions and research said over the last four years we have been prioritizing our investments to develop integrated capabilities in areas such as ai for business hybrid cloud cyber security analytics supply chain and blockchain as well as industryspecific platforms and solutions including healthcare industrial iot and financial services these are among the emerging highvalue segments of the it industry kelly believes this is the time is right to divest these select collaboration marketing and commerce software assets which are increasingly delivered as standalone products at the same time we believe these products are a strong strategic fit for hcl and