IBM’s Cloud Services

IBM has been restructuring its business to accommodate better growth opportunities by boosting profitability and focusing on new ventures. This includes expanding their cloud services. Recently, IBM announced their hybrid cloud technology, which extends client control, visibility, and security into the private cloud as well as allow developers to work across any IT cloud. By 2018, the company hopes to see $40 billion in revenue from services such as the cloud, big data, security, etc.


Cloud computing gives way for convenient, on-demand access to a shared pool of computing resources, such as servers, storage, applications and services. These can quickly be released with minimal effort on the managerial or service provider side. Cloud computing is made up of three main services: software as a service (SaaS), infrastructure as a service (IaaS) and platform as a service (PaaS). SaaS is expected to grow the fastest, followed by IaaS, though all three categories are going to be in high demand in the near future. Growth is expected due to the global demand for technology-based services. The global cloud computing market is expected to reach almost $200 billion by 2020.




The three services previously mentioned are interconnected and dependent on one another in order to provide a cost effective solutions for clients. Most cloud services are providing a multitenancy structure, which represents a shared infrastructure with many locations in a topology that leverages advantages of remote access to deliver new businesses and services. SaaS software is positioned on the internet. A software company licenses an application to customers through a subscription based model. Another approach that recently popped up is one that gives users free access to the most basic functions, and requiring payment for more advanced ones. IBM has 120 SaaS offerings that cover a wide array of capabilities. They cover everything from big data analytics to human resource administration.


IaaS delivers on-demand cloud computing infrastructure through the use of secure IP-based connectivity. Clients can buy resources such as servers, software and data center space as a fully outsourced on-demand system. IaaS is based on creating a virtual version of something, and users are responsible for managing the applications, data, and middleware. IBM’s lead IaaS service is based on a global cloud infrastructure called SoftLayer. This program provides different machine virtualization services that can run both advanced operating systems and analytics software. This program is based on a pay-as-you-go model.


PaaS is the most complex layer. PaaS is a computing platform that allows creation of applications of software fast without the complexity of buying and maintaining it or its infrastructure. The software created is then delivered over the internet. In this layer, IBM has the Bluemix platform, which offers developers a single solution environment to develop and deploy application across many domains.


Cloud services have come to the front end of companies of all sizes that are looking to improve their business through the use of IT solutions or services. The advantage of this approach is the scalability and accessibility of new applications, resources and services. Also, the initial cost of this method is lower. IBM’s cloud service vision allows customers to subscribe not only to standalone applications, but also to interact with Softlayer’s infrastructure with ease as well as on-site applications and SaaS offerings. IBM has invested over $1 billion to expand their footprint in cloud centers that are accessible to every major financial network around the world. These investments should lead to big revenue in the

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