Category Archives: IBM

Big Data, IBM, John Kelly, M&A, Merge, News & Analysis, Vendor, Watson

IBM bolsters Watson Healthcare capabilities with $1bn Merge acquisition

IBM is bolstering its Watson Health Cloud with the Merge acquisition

IBM is bolstering its Watson Health Cloud with the Merge acquisition

IBM announced its intention to acquire Merge Healthcare, a medical imaging and processing platform provider, which it plans to integrate with Watson. The company said the move would bolster the cognitive computing cloud’s clinical and medical capabilities.

Merge claims its technology is used at more than 7,500 US healthcare sites and many of the world’s largest clinical research institutes and pharmaceutical firms to manage and process medical images.

IBM said it plans to integrate Merge’s medical image handling technologies with the Watson Health Cloud. The company said the move would enable it to extend Watson’s analytics to medical images and create a consolidated platform to store, analyse and suggest treatments based on them, as well as cross-reference the images against a growing trove of lab results, electronic health records, clinical studies and other healthcare-related research and data.

“As a proven leader in delivering healthcare solutions for over 20 years, Merge is a tremendous addition to the Watson Health platform.  Healthcare will be one of IBM’s biggest growth areas over the next 10 years, which is why  we are making a major investment to drive industry transformation and to facilitate a higher quality of care,” said John Kelly, senior vice president, IBM Research and Solutions Portfolio.

“Watson’s powerful cognitive and analytic capabilities, coupled with those from Merge and our other major strategic acquisitions, position IBM to partner with healthcare providers, research institutions, biomedical companies, insurers and other organizations committed to changing the very nature of health and healthcare in the 21st century. Giving Watson ‘eyes’ on medical images unlocks entirely new possibilities for the industry.”

“Medical images are some of the most complicated data sets imaginable, and there is perhaps no more important area in which researchers can apply machine learning and cognitive computing.  That’s the real promise of cognitive computing and its artificial intelligence components – helping to make us healthier and to improve the quality of our lives,” he added.

IBM sees huge potential for its Watson service in healthcare, and has moved to back that belief with a flurry of acquisitions and partnerships.

Earlier this year it bought Phytel, which provides cloud-based software that helps healthcare providers and care teams coordinate activities across medical facilities by automating certain aspects of patient care, and acquired Explorys, a provider of cognitive cloud-based analytics that provides insights for care facilities derived from datasets derived from numerous and diverse financial, operational and medical record systems.

It also announced a partnership with Apple that is seeing IBM offer its Watson Health Cloud platform as a storage and analytics service for HealthKit data aggregated from iOS devices, and open the platform up for health and fitness app developers as well as medical researchers.

Christopher O’Connor, developers, IBM, Internet of Things, Jone Rasmussen, News & Analysis

IBM targets IoT with developerWorks

IBM is targeting IoT developers with developerWorks

IBM is targeting IoT developers with developerWorks

As part of the recently announced developerWorks initiative IBM is creating a community, developerWorks Recipes, aimed specifically at developers creating Internet of Things (IoT) services.

The developerWorks Recipes community will offer participating developers access to IBM’s Bluemix platform as well as tutorials and technical guides on how to develop and deploy IoT services like connected car, healthcare device or industrial machine monitoring and diagnostic services.

“IBM has long been a leader in offering innovative tools for developers to create the applications of our future.  Now, IBM is expanding that focus so anyone – from the software novice to the experienced hardware engineer – can easily and quickly access materials providing guidance in the creation, management and connection of IoT devices to each other and the cloud,” said Christopher O’Connor, general manager, offerings, Internet of Things at IBM.

“With developerWorks Recipes, IBM provides easy access to new analytics and operational insight capabilities that tap into the vast data from many connected devices, home appliances or cars,” O’Connor said.

IBM just launched developerWorks last week, a cloud-based platform that provides access to Bluemix and emerging IBM tech and expertise in the form of blogs, informational videos and other multimedia, as well as the opportunity to collaborate with specialists.

Jone Rasmussen, general manager of IoT developer tool startup Bitreactive said the platform has the potential to help companies that want to develop new services quickly at a time when device development and vendor activity is expanding rapidly and standards scarcely available.

“Developers just can’t be experts on each new ‘thing’ that gets added to the IoT,” Rasmussen said. “To control costs of IoT projects, developers need easy, repeatable ways to quickly extract data from devices.”

How are developers using cloud to develop IoT services? Click here to download the whitepaper created by BCN and IBM to find out.

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Alibaba takes aim at AWS, Google, Microsoft, pours $1bn into global cloud rollout

Alibaba is pouring $1bn into its cloud division to support global expansion

Alibaba is pouring $1bn into its cloud division to support global expansion

Alibaba announced plans this week to plough $1bn into its cloud computing division, Aliyun, in a bid to expand the company’s presence and establish new datacentres internationally. The move may give it the scale it needs to compete more effectively with the likes of Amazon and Google.

The company currently operates five datacentre in China and Hong Kong, and earlier this year set up a datacentre in Silicon Valley aimed at local startups and Chinese multinational corporations.

The $1bn in additional investment will go towards setting up new cloud datacentres in the Middle East, Singapore, Japan and in various countries across Europe.

“Aliyun has become a world-class cloud computing service platform that is the market leader in China, bearing the fruits of our investment over the past six years. As the physical and digital are becoming increasingly integrated, Aliyun will serve as an essential engine in this new economy,” said Daniel Zhang, chief executive officer of Alibaba Group.

“This additional US$ 1 billion investment is just the beginning; our hope is for Aliyun to continually empower customers and partners with new capabilities, and help companies upgrade their basic infrastructure. We want to enable businesses to connect directly with consumers and drive productivity using data. Ultimately, our goal is to help businesses successfully transition from an era of information technology to data technology,” Zhang said.

The company said it also plans to use the funds to expand its partnerships through its recently announced Marketplace Alliance Program, a move that sees it partnering with large tech and datacentre operators, initially including Intel, Singtel, Meeras, Equinix and PCCW among others to help localise its cloud computing services and grow its ecosystem.

The investment if anything confirms Alibaba’s intent to grow well beyond Asia and displace other large public cloud providers like AWS, IBM and Google, which already boast significant global scale.

Africa, Funding, IBM, Kenya, Kenya Education Network, Meoli Kashorda, Naguib Attia, News & Analysis, public private partnership

IBM to invest $60m in Africa to expand cloud, analytics skills

IBM is investing $60m in Africa over three years to train students in cloud, big data and analytics

IBM is investing $60m in Africa over three years to train students in cloud, big data and analytics

IBM will invest $60m in Africa over three years to expand its technical academy and educational initiatives in the region. The company said it wants to bolster its investment in developing stronger regional capabilities in cloud services, big data and analytics.

In Kenya, where IBM’s Africa Research lab and Innovation Centres are based, the company is partnering with the Kenya Education Network (KENET) to deliver advanced certification courses in cloud and data sciences to faculty and students of 50 Kenyan universities linked by KENET’s broadband network.

The courses will be administered by IBM technical experts along with key faculty from participating universities.

“With a research laboratory, innovation centers, offices and other advanced facilities in more than 24 African countries, IBM has the highest concentration of technical talent on the African continent,” said Naguib Attia, IBM chief technology officer & vice president of technical leadership, MEA.

“As the leader in science and technology in Africa, we see it as IBM’s responsibility to make a strategic investment in skills development helping to lay the foundations of the Africa of tomorrow,” he said.

Attia said partners hope to reach up to 35,000 students by 2017.

Meoli Kashorda, executive director of Kenya Education Network said the certification program will provide university graduates with critical entry-level job skills in high demand by employers in Kenya and Africa more broadly.

“Both the African universities and leading private sector companies that are investing on the continent stand to benefit from this program,” he said.

The move comes just a few days after IBM unveiled a tech collaboration space in Nairobi, where the company hopes to facilitate tech partnerships between startups in the region. The space, which will make a range of IBM services like Bluemix and various cloud applications available to developers by offering credits, will open in August this year.

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AWS rakes in $1.8bn in Q2 as ‘big four’ corner half the cloud services market

AWS is bringing in nearly $2bn in quarterly revenues

AWS is bringing in nearly $2bn in quarterly revenues

AWS revenue for the second quarter of this year topped $1.82bn, an increase of about 81 per cent year on year. The results come as other major IT service providers revealed strong cloud growth for the quarter.

Last quarter, the first time it pulled the curtain back on its cloud business, Amazon revealed AWS raked in $1.57bn in revenue. Operating income for Q2 increased 407 per cent to $391m.

Commenting on the results Amazon chief executive Jeff Bezos said “[we] continued to double down on our fastest growing geography — India, launched 350 significant AWS features and services so far this year, ahead of last year’s pace, introduced AWS Educate, and entered into agreements for new solar and wind farms — enough to exceed our 2016 goal of 40 per cent renewable energy.”

Speaking to analysts this week Amazon’s chief financial officer Brian Olsavsky said the company is also getting more competitive on cost as it continues to optimise its services.

“We had over 350 significant new features and services and we believe that’s what resonates with customers. While pricing is certainly a factor we don’t believe it’s always the primary factor; in fact what we hear from our customers is that the ability to move faster and more agility is what they value,” he explained.

But he deflected questions about the capital intensity of the AWS business – which represent about 80 per cent of its overall capex.

Synergy Research Q2 Cloud Market Estimates“We do realise it’s a capital-intensive business and we have modelling that shows it’s going to be a very good business for us and that’s what we aim for as long-term return on invested capital and free cash flow. So, we’re certainly cognizant of the capital part of the calculation,” he said.

Amazon revealed the results as other large incumbents pulled back the curtain on their cloud performance. The second quarter saw Microsoft grow its cloud revenues 88 per cent and IBM 60 per cent.

But the results suggest some of the smaller cloud providers are being left in the dust. According to John Dinsdale, chief analyst and research director at Synergy Research Group, quarterly cloud infrastructure service revenues (including IaaS, PaaS and private & hybrid cloud) are now approaching the $6bn, while trailing twelve-month revenues hitting close to $20bn. Synergy estimates AWS, Microsoft, IBM and Google (the ‘big four’) control well over half of the worldwide cloud infrastructure service market.

“The cloud infrastructure services market is quite clearly bifurcating with a widening gap between the big four cloud providers and the rest of the service provider community,” Dinsdale explained. “Developing the necessary global hyperscale datacentre infrastructure along with the required marketing and operations support is simply beyond the reach of all but a very small number of players. This is not going to change.”

The good news for smaller and medium-sized cloud providers, he said, is that there does remain a wealth of opportunity for them to specialise in a particular niche industry or geography. At the moment the firm reckons North America accounts for over half of the worldwide cloud services market, followed by the EMEA and APAC regions.

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IBM buys Compose to strengthen database as a service

IBM has acquired Compose, a DBaaS specialist

IBM has acquired Compose, a DBaaS specialist

IBM has acquired Compose, a database as a service provider specialising in NoSQL and NewSQL technologies.

Compose helps set up and manage databases running at pretty much any scale, deployed on all-SSD storage. The company’s platform supports most of the newer database technologies including MongoDB, Redis, Elastisearch, RethinkDB and PostgresSQL and is deployed on AWS, DigitalOcean and SoftLayer.

“Compose’s breadth of database offerings will expand IBM’s Bluemix platform for the many app developers seeking production-ready databases built on open source,” said Derek Schoettle, general manager, IBM Cloud Data Services.

“Compose furthers IBM’s commitment to ensuring developers have access to the right tools for the job by offering the broadest set of DBaaS service and the flexibility of hybrid cloud deployment,” Schoettle said.

Kurt Mackey, co-founder and chief executive of Compose said: “By joining IBM, we will have an opportunity to accelerate the development of our database platform and offer even more services and support to developer teams. As developers, we know how hard it can be to manage databases at scale, which is exactly why we built Compose –to take that burden off of our customers and allow them to get back to the engineering they love.”

IBM said the move would give a big boost to its cloud data services division, where it’s seeing some solid traction; this week the company said its cloud data services, one of its big ‘strategic imperatives’, saw revenues swell 30 per cent year on year. And according to a report cited by the IT incumbent and produced by MarketsandMarkets, the cloud-based data services market is expected to swell from $1.07bn in 2014 to $14bn by 2019.

This is the latest in a series of database-centric acquisitions for IBM in recent years. In February last year the company acquired database as a service specialist Cloudant, which built a distributed, fault tolerant data layer on top of Apache CouchDB and offered it as a service largely focused on mobile and web app-generated data. Before that it also bought Daeja Image Systems, a UK-based company that provides rapid search capability for large image files spread over multiple databases.

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IBM doubles down on developers and open source

IBM is launching a cloud-based open source platform and putting its own tech at the core of it

IBM is launching a cloud-based open source platform and putting its own tech at the core of it

IBM launched developerWorks Open this week, a platform being aimed at developers looking to develop open source solutions in collaboration with IBM using the company’s technology as a foundation.

The cloud-based platform will provide access to emerging IBM tech and expertise in the form of blogs, informational videos and other multimedia, and the opportunity to collaborate with specialists.

The company said it plans to contribute upwards of 50 projects to the initiative spanning various applications in cloud, analytics and mobile, and will also make the contributed services available on Bluemix.

“IBM firmly believes that open source is the foundation of innovative application development in the cloud,” said IBM vice president of cloud architecture and technology Angel Diaz. “With developerWorks Open, we are open sourcing additional IBM innovations that we feel have the potential to grow the community and ecosystem and eventually become established technologies.”

The company is also launching a set of open source projects specifically targeting applications and workflows in a number of industry verticals including healthcare, mobile, retail, insurance and banking. It said much of the open source development today, while promising, “lacks a strategic focus” on business requirements.

IBM has in recent years looked to bolster its open source strategy, in part by creating and owning its own communities. In 2013 for instance it launched the OpenPower Foundation, a group of technology companies innovating with and on top of its Power8 microarchitecture.

The company has also thrown its weight behind a number of large cloud-centric open source projects including OpenStack, Cloud Foundry (on which Bluemix is based), Docker and more recently, Apache Spark.

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IBM, Microsoft struggle while SAP largely bucks the trend

IBM, Microsoft and SAP all released their financial results this week

IBM, Microsoft and SAP all released their financial results this week

IBM and Microsoft revealed steep losses this week as the two companies released their Q2 financial results, but SAP seems to have bucked the trend with close to 130 per cent growth in cloud revenues and 13 per cent growth in revenue.

IBM revealed second quarter net income from continuing operations was $3.5bn compared with $4.3bn in the second quarter of 2014, a decrease of 17 per cent, and revenue was down 13 per cent, much of which it blamed on recent large divestitures and related cash impairments.

Year on year growth in its cloud business – from $2.8bn in the second quarter last year to $4.5bn in Q2 2015 – and ten per cent growth in its analytics business hasn’t fully compensated for some of the challenges the company facing elsewhere in its business. The company’s revenues have been in decline for almost three years sequentially.

“Our results for the first half of 2015 demonstrate that we continue to transform our business to higher value and return value to shareholders,” said Ginni Rometty, IBM chairman, president and chief executive officer. “We expanded margins, continued to innovate across our portfolio and delivered strong growth in our strategic imperatives of cloud, analytics and engagement, which are becoming a significant part of our business.”

Microsoft saw quarterly revenues hit $22.2bn in Q2 this year, but the company reported record losses of $14.7bn, much of which resulted from the impact of its $7.5bn write-down of its failing Nokia business, with other costs related to the restructuring nearing $1bn. The company also said the strengthening of the dollar relative to other currencies had a significant impact on its results.

But Microsoft reported commercial cloud revenues grew of 88 per cent in the quarter, driven largely by Office 365, Azure and Dynamics CRM Online uptake, while the division selling on-premise licenses for its productivity offerings declined 4 per cent; the company said it added roughly 3 million cloud users in the quarter.

“In our commercial business we continue to transform the product mix to annuity cloud solutions and now have 75,000 partners transacting in our cloud,” said Kevin Turner, chief operating officer at Microsoft.

German software giant SAP seems to be one of the few large incumbents bucking the trend this quarter. The company revealed cloud subscriptions and support revenue grew 129 per cent in Q2, new cloud bookings were up 162 per cent, and it more than doubled its SAP HANA customers year on year (from 3,600 to over 7,200). The company reported overall quarterly revenues rose 13 per cent to €1.39bn.

“Our second quarter growth in new cloud bookings was significantly higher than in the first quarter. This momentum showed across our entire cloud and business network portfolio,” said SAP chief financial officer Luka Mucic. “Our operating profit performance is beginning to reflect the business transformation we initiated to make SAP ready for the future. We are on track to achieve our full year business outlook.”

The results come as all three companies – Microsoft, IBM and SAP – continue ambitious redeployment and reorganisation efforts to address a shift in the market towards cloud services and away from legacy software and services.

AT&T, Box, Cisco, Cloud Foundry Foundation, CoreOS, Cycle Computing, Docker, eBay, Goldman Sachs, Google, Huawei, IBM, Intel, Joyent, Kismatic, Linux containers, Mesosphere, News & Analysis, Open Source, Red Hat, Switch Supernap, Twitter, Univa, VMware

Box, Docker, eBay, Google among newly formed Cloud Native Computing Foundation

The Cloud Native Computing Foundation is putting Linux containers at the core of its definition of 'cloud-native' apps

The Cloud Native Computing Foundation is putting Linux containers at the core of its definition of ‘cloud-native’ apps

The Linux Foundation along with a number of enterprises, cloud service providers , telcos and vendors have banded together to form the Cloud Native Computing Foundation in a bid to standardise and advance Linux containerisation for cloud.

The newly formed open source foundation, a Linux Foundation collaborative project, plans to create and drive adoption of common container technologies at the orchestration level, and integrate hosts and services by defining common APIs and standards.

The organisation also plans to assemble specifications to address a “comprehensive set of container application infrastructure needs.”

The members at launch include AT&T, Box, Cisco, Cloud Foundry Foundation, CoreOS, Cycle Computing, Docker, eBay, Goldman Sachs, Google, Huawei, IBM, Intel, Joyent, Kismatic, Mesosphere, Red Hat, Switch Supernap, Twitter, Univa, VMware and Weaveworks.

“The Cloud Native Computing Foundation will help facilitate collaboration among developers and operators on common technologies for deploying cloud native applications and services,” said Jim Zemlin, executive director at The Linux Foundation.

“By bringing together the open source community’s very best talent and code in a neutral and collaborative forum, the Cloud Native Computing Foundation aims to advance the state-of-the-art of application development at Internet scale,” Zemlin said.

The central goal of the foundation will be to harmonise container standards and techniques. A big challenge with containers today is there are many, many ways to implement them, with a range of ‘open ecosystems’ and vendor-specific approaches, all creating one heterogeneous, messy pool of technologies that don’t always play well together.

That said, the foundation expects to build on other existing open source container initiatives including Docker’s recently announced Open Container Initiative (OCI), with which it will work on building its container image spec into the standards it develops. Google also announced that the foundation would henceforth govern development of Kubernetes, which reached v.1 this week, over to the foundation.

“Google is committed to advancing the state of computing, and to helping businesses everywhere benefit from the patterns that have proven so effective to us in operating at Internet scale,” said Craig McLuckie, product manager at Google. “We believe that this foundation will help harmonize the broader ecosystem, and are pleased to contribute Kubernetes, the open source cluster scheduler, to the foundation as a seed technology.”

Ben Golub, chief executive of Docker said while the OCI offers a solid foundation for container-based computing many standards and fine details have yet to be agreed.

“At the orchestration layer of the stack, there are many competing solutions and the standard has yet to be defined. Through our participation in the Cloud Native Computing Foundation, we are pleased to be part of a collaborative effort that will establish interoperable reference stacks for container orchestration, enabling greater innovation and flexibility among developers. This is in line with the Docker Swarm integration with Mesos,” Golub said.

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IBM, Mubadala joint venture to bring Watson cloud to MENA

IBM is bringing Watson to the Middle East

IBM is bringing Watson to the Middle East

IBM is teaming up with Abu Dhabi-based investment firm Mubadala Development Company to create a joint venture based in Abu Dhabi that will deliver IBM’s cloud-based Watson service to customers in the Middle East and Northern Afirca (MENA) region.

The companies will set up the joint venture through Mubadala’s subsidiary, Injazat, which will be the sole provider of the Watson platform in the region.

The companies said the move will help create an ecosystem of MENA-based partners, software vendors and startups developing new solutions based on the cognitive compute platform.

“Bringing IBM Watson to the region represents the latest major milestone in the global adoption of cognitive computing,” said Mounir Barakat, executive director of ICT at Aerospace & Engineering Services, Mubadala.

“It also signals Mubadala’s commitment to bringing new technologies and spurring economic growth in the Middle East, another step towards developing the UAE as a hub for the region’s ICT sector,” Barakat said.

Mike Rhodin, senior vice president of IBM Watson said Mubadala’s knowledge of the local corporate ecosystem will help the company expand its cognitive compute cloud service in the region.

IBM has enjoyed some Watson wins in financial services, healthcare and the utilities sectors, but the company has been fairly quiet on how much the division rakes in; over the past year the company made strides to expand the platform in the US, Africa and Japan, and recently made a number of strategic acquisitions in software automation in order to boost Watson’s appeal in customer engagement and health services.