CEO Ginni Rometty says Big Blue will lead the already crowded and competitive hybrid computing market
Despite showing two consecutive quarters of growth due largely to increasing sales of its cloud services, IBM is still playing catch-up with Amazon Web Services and Microsoft in the cloud market. Now, CEO Ginni Rometty says IBM will dominate the emerging hybrid cloud computing segment.
The Lowdown: In an interview with Fox Business at the World Economic Forum in Davos, Rometty said hybrid cloud is “Chapter 2” of cloud computing evolution, representing a trillion-dollar market opportunity.
“That’s a $1 trillion market, ‘Chapter 2,'” she said in the interview with Maria Bartiromo. “We will be No. 1 in what the world calls
The Details: How and when IBM will achieve this lofty goal is unclear. Rometty called the adoption of public cloud “low hanging fruit” and “the easy thing to do” for most businesses. However, most enterprises want to retain sensitive data and processes in local environments, and that represents 80 percent of the market, she said.
Hybrid computing is not new though. Many businesses use hybrid architecture to augment their computing capacity and capabilities. According to RightScale’s annual 2018 State of the Cloud report, 90 percent of businesses have adopted some form of cloud computing, and 81 percent use multiple cloud providers to meet their needs.
Background: IBM may aim to dominate the hybrid cloud segment, but it’s not alone.
Through its Azure platform, Microsoft has long offered businesses the ability to build local servers that interface directly with its cloud resources.
In November, Amazon Web Services announced AWS Outpost, servers that offer businesses the ability to have local servers running Amazon or VMware controllers to interface with the Amazon cloud. AWS Outpost is somewhat different from traditional hybrid computing, as Amazon includes full managed services.
Last year, IBM bought open-source software vendor Red Hat for $34 billion in a bid to bolster its cloud business by providing businesses with tools to make cloud migration and management easier and more efficent.
Channelnomics Point of View: IBM is pinning its future on emerging technologies, including artificial intelligence, analytics, security, and cloud computing. While it posted two consecutive quarters of growth, it’s spent much of the past seven years watching sales shrink as customers moved away from its traditional hardware, software, and professional services offerings. IBM will need more cloud offerings, including hybrid systems, to remain relevant to partners and customers alike.