The report from Reuters is interesting considering the fact that both EMC as well as IBM are major cloud players with their infrastructure in place. EMC holds 80 per cent stake in VMWare and confirmed yesterday that they were going to build their infrastructure-as-a-service cloud to pitch against Amazon Web Services.

IBM on the other hand has been active in the cloud computing arena and had been busy setting up its own cloud services since over a decade now and just recently started rolling out its own OpenStack based cloud service.

Both the companies eyeing a comparatively smaller player like SoftLayer indicates that the giants don’t mind investing into newer technologies as they would be able to garner some of SoftLayer’s prestigious clients like Path, SlideShare, Citrix, SendGrid, Cloudant, AT&T and ZipServers. Another reason could be that Microsoft and Google have also been working on their own cloud infrastructures and an acquisition of an established company with real clients would give them a much needed boost.