In an area that has been historically dominated by Amazon.com's (NASDAQ:AMZN) AWS service, IBM (NYSE:IBM) is making a big push to become more competitive. Big Blue recently announced its acquisition of Soft Layer Technologies for an undisclosed amount, although sources suggest that $2 billion is a good estimate. In conjunction with the acquisition, company executives commented that IBM wants to become competitive by offering value-added services, not just cloud storage and access.

In the following video, Fool.com contributor Doug Ehrman discusses details of the acquisition and what it could mean for IBM in the cloud market.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Netflix and owns shares of Amazon.com, IBM, and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.