IBM’s earnings showed that its cloud and cognitive software revenues were down by 4.5% to $6.8 bn. Revenue from cognitive applications — where AI incomes are mentioned — were flat. However, Red Hat performed well, with a rise of 18% in revenue YoY. But overall IBM’s revenue declined for the fourth straight quarter. Experts, however, said it’s too easy to say that IBM’s transformation strategy has failed, the results aren’t there yet.
IBM, to boost Hybrid Cloud capabilities, has acquired Cloud professional and managed services provider Taos, for an undisclosed amount. Taos has 30 years and partnered with AWS, GCP, and Microsoft Azure to deliver data centre migration, platform engineering and hybrid cloud managed services. It has clients across tech, BFSI, healthcare, retail, transportation and education vertical. IBM, in the last 2 months, acquired Salesforce consultancy provider 7Summits and Nordcloud.
Larsen & Toubro Infotech will expand its alliance with IBM to help businesses transform ops using open hybrid cloud adoption. They also plan to establish a CoE in Bengaluru to help clients migrate and modernise core business apps. The CoE will offer a suite of IBM’s Cloud, Automation, Integration, Data & AI solutions to foster innovation. LTI is a part of the IBM Hybrid Cloud Ecosystem and has developed industry-ready solutions using hybrid cloud capabilities.
RedHat is acquiring container security startup StackRox for an undisclosed amount. The acquisition fits nicely with RedHat OpenShift, its container platform, but the company says it will continue to support StackRox usage on other platforms including AWS, Azure and Google Cloud Platform. This approach is consistent with IBM’s strategy of supporting multi-cloud, hybrid environments. StackRox was founded in 2014 and raised over $65 mn.
Former financial chief, Martin Schroeter would be the head of IBM ‘s new IT infrastructure services unit, as it shifts focus on high-margin cloud business. The unit would provide technical support to 4,600 clients in 115 countries by the end of 2021. The new will have 90,000 people working on management and modernisation of IT infrastructure across industries. IBM saw a $ 1 trillion market opportunity in the hybrid cloud business.
Subram Natarajan, CTO, IBM India/South Asia lists six priorities cloud will fuel for Indian firms 1) A clear drive by the customers’ IT teams, to standardise on the tech enablers. 2) Addressing roadblocks regarding security, compliance and regulatory requirement. 3) Edge and satellite computing. 4) Intelligent automation to go mainstream 5 ) The fortification of core security wall 6) AI adoption to help predict outages and facilitate the timely resolution of issues.
IBM has acquired Helsinki-based multi-cloud consulting firm Nordcloud for an undisclosed amount. Nordcloud has 500 consultants certified in AWS, Azure and Google Cloud Platform, giving IBM much needed experts in Hybrid cloud as they move away from an IBM -centric solution to choosing to work with the customer implement a cloud strategy. Nordcloud was founded in 2011 and has raised more than $26 mn.