There are few advantages to growing old, but if you were lucky enough to train, back in the hidden midst of times past, in programming languages COBOL or PL/I, you may have landed in later life into a well-paid role maintaining legacy mainframe systems. A large part of the market for mainframes collapsed in the […]
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IBM is expanding its AI efforts via an expanded collaboration with Oracle. The company will integrate its watsonx AI tools into Oracle Cloud Infrastructure (OCI), with the aim of making it easier for businesses to run and manage AI agents in platforms. AI agents – software tools that perform tasks based on user input – […]
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BNP Paribas is expanding its use of IBM Cloud, and has plans to dedicate a new section of its data centres to the platform by 2028. The move builds on a collaboration that began in 2019 when the bank began hosting IBM Cloud infrastructure on its facilities to support wider digital transformation efforts. The upcoming […]
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IBM is setting its sights on a major upgrade in AI hardware, with the company in talks with AWS to access Nvidia’s highly sought-after AI chips. The deal, worth an estimated $475 million over five years, would grant IBM access to AWS’s Elastic Compute Cloud (EC2) servers, which are powered by Nvidia GPUs. As part… Read more »
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Flexera, a company that helps organisations maximise business value from their technology investments, has launched Flexera One Select for IBM, a precision edition of Flexera One IT Asset Management (ITAM) designed to simplify and automate IBM-only license reporting. Flexera’s relationship with IBM aims to enhance the customer experience for license consumption reporting with technology intelligence… Read more »
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IBM has developed IBM Partner Plus, a new program that reimagines how IBM engages with its business partners through unprecedented access to IBM resources, incentives, and tailored support to deepen their technical expertise and help speed time to market. The program is designed to fuel growth for new and existing partners, including resellers, hyperscalers, technology… Read more »
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IBM has rolled out IBM Cloud for VMware as a Service, a combination of IBM’s hybrid cloud strategy and VMware capabilities that is helping global clients and partners modernise their workloads and expedite time to value in hybrid cloud environments. The update builds on IBM’s 20-year partnership with VMware, expanding upon one of the broadest… Read more »
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The changing landscape of the IT industry has changed the fortunes of many companies. While companies like AWS, Microsoft and Google have been able to cash in on the fortunes, others like IBM and HPE haven’t been so lucky. In fact, HPE recently closed its low-end cloud server business because it’s not profitable for the company any more.
As for IBM, the changes have been too hard. This company was deep-rooted in the traditional server and infrastructure business, so it has been tough to adapt to new technologies like AI and cloud that need a paradigm shift in the way the infrastructure is setup and handled.
Over the last 21 quarters, this almost-century-old company has seen falling year-on-year revenues. In fact, Warren Buffet, the chief executive of Berkshire Hathaway announced that in May of this year, the company sold about a third of its stake in the company. This alone amounted to around $13.5 billion.
To make up for this loss, the company has been aggressively pushing into the areas of cloud computing and AI, but is this a story of too little too late or can IBM get back to the top again?
Well, the latest results announced by the company on October 17th show that revenues have slipped again. However, the good news is that revenues fell lesser than expected. So, many supporters of the company including its management believe that the next quarter could see good returns. This positive statement by the company caused its shares to rise by 8.9 percent the following day, which is the biggest single day gain in the stock market since 2009.
These signs indicate that good things are yet to come for the company and after all, there is still some hope. This is not the first time that IBM had to make this strategic shift in its operations. After almost a near-death in 1990s after the collapse of mainframes, IBM continued to find its niche and stay on top of the technology sector. In fact, if you look back, you’ll see that it was one of the first companies to adapt to the Internet and back open-source software. It assured investors of good returns within five years and even spent billions of dollars in buyback programs. This strategy worked well for the company and its investors.
Likewise, this time too, we can expect IBM to bounce back because it is after all doing the right things. Though AWS, Microsoft and Google have a huge lead in the cloud services market, IBM is not too far behind. With such diligence, good strategy and wise managerial decisions, it can definitely bounce back.
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IBM has launched two new services with an aim to bring more businesses to the cloud.
Currently, many businesses are stuck with legacy systems that make it difficult to migrate to the cloud, and as a result, they miss out on the benefits that come with cloud. To overcome this limitation, IBM has come up with two services that will make this migration easy.
These two processes are IBM Cloud Migration Services and IBM Cloud Deployment Services. Cloud migration services, as the name implies, helps businesses to get ready to move to the cloud. In this service, IBM works with you to identify your existing IT infrastructure and your goals, and based on this, they create a plan to help you migrate to the cloud.
Cloud deployment services, on the other hand, is an automated service hat eases the deployment process. Essentially, it models infrastructure and application solutions and repeats this pattern to automate the entire process. This product is available for public and hybrid cloud providers, including non-IBM products and services.
So, how are these services different from the large repertoire of services that IBM currently offers?
The biggest advantage is that these services make it a lot less expensive and easy for companies to orchestrate their workloads, regardless of the underlying cloud delivery model. The cloud deployment services, in particular, are a next generation set of tools that can automate based on the existing workflows. As a result, the service provisioning time including the time it takes to design, build and deploy is greatly reduced.
Another advantage is that all these services are tied with Watson, so businesses can leverage the power of this cognitive platform as well. This means, over time, the system can learn from patterns and predict behavior and solutions. It can be most helpful for identifying problems, self learning, self healing and avoiding disruptions to existing services.
From IBM’s perspective, both these services are the perfect addition to its existing portfolio of products and services. With more such innovative products, IBM could expand its client base, especially in emerging markets in the Asia Pacific region where the potential for cloud services still remains huge.
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New research from Synergy states while the cloud market is growing at a healthy rate quarter-by-quarter, the four dominate cloud brands are continuing to pull away from the pack, controlled more market share month-by-month, reports Telecoms.com.
Data from Synergy Research claims the four companies now collectively control more than 50% of worldwide cloud market share (IaaS, PaaS and Hosted Private Cloud), with AWS maintaining its lead at the top of the leader board controlling almost a third of worldwide share. Over the course of the second quarter of 2016, the top four grew revenues by 68%, while the next 20 players, who roughly account for a quarter of the market share, grew 41%. All other vendors in this space grew by a collective 27%.
“In a variety of ways Amazon and the other big three players have distanced themselves from the competition in this market and continue to widen the gap,” said John Dinsdale, Research Director at Synergy Research Group. “What marks them out as different is their global presence, marketing muscle, ability to fund huge investments in hyper scale data centres and, in most cases, a determination to succeed in the market.
“The ranking of the next 20 largest cloud providers features some interesting companies, with Alibaba and Oracle growing particularly strongly, but they are all starting from a long way behind Google, which is itself growing by well over 100% per year and yet remains only a sixth the size of Amazon.”
Although AWS is still the dominant market player, growth is slowing. Google and Microsoft both posted growth figures of more than 100%, though it is far too soon to write AWS’ obituary, as it still controls more than three times the market share of its nearest rival, Microsoft Azure.
Microsoft has been going through a number of transformation projects in recent years, and while the market share for cloud shows it will still be some time before it catches AWS, the team are finding success in other arenas. According to additional research from Synergy, in the data centre infrastructure market, HPE and Cisco may be leading the way for public and private cloud hardware, but Microsoft now accounts for just over 40% of cloud software share, with VMWare its nearest competitor at roughly 20%. The research including share for servers, server OS, storage, networking, network security and virtualization software.
“With spend on cloud services growing by over 50% per year and spend on SaaS growing by over 30%, there is little surprise that cloud operator capex continues to drive strong growth in public cloud infrastructure,” said Jeremy Duke, Synergy Research Chief Analyst. “But on the enterprise data centre side too we continue to see a big swing towards spend on private cloud infrastructure as companies seek to benefit from more flexible and agile IT technology. The transition to cloud still has a long way to go.”