Geekzone: technology news, blogs, forums
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.

IBM’s late cloud play aims for Amazon catch up
Posted on 20-Jan-2014 09:51 by Bill Bennett. | Tags Filed under: News.

IBM made headlines over the weekend when it said it will spend US$1.2 billion to expand its cloud computing business. The plan includes adding 15 new data centres on five continents to the 13 it already has. Eventually there will be 40 data centres.

Last year the company paid around US$2 billion to buy SoftLayer, a cloud computing business.

There’s no question IBM’s aim is playing catch up with Amazon Web Services. Amazon dominates the market. It has almost five times as much capacity as any other cloud provider and earns US$3 billion a year from the cloud.

Amazon’s cloud business is spread around the globe with 40 or so data centres.

IBM has little option but to compete with Amazon.

Cloud computing continues to grow at a steady pace. It’s already disrupted the server and enterprise computing markets where IBM plays.

IBM has struggled to stay relevant with its legacy computing business and, until now, had a fragmented and confusing cloud strategy. Revenues have been falling and its hardware business is in sharp decline.

While there’s still a market for companies to own their own computing infrastructure, the big money is now being made from cloud services. Amazon is a pure cloud play, it doesn’t sell hardware.

IBM has pushed private clouds – an idea that combines in-house infrastructure with cloud-like capabilities. Private cloud promises some of the benefits of cloud computing but it requires companies to buy hardware, install it in a data centre, buy software and hire the staff to keep everything ticking over. True cloud computing gets rid of all these costs and complications.

In truth for everyone except the very largest organisations – and that means no-one in New Zealand at all – a true cloud is a less expensive, more flexible and safer option.

These days IBM’s greatest strength is in providing professional services. It has much to offer cloud customers, for example integrating their cloud projects.

[digitl 2014]

digitl on Google+

The post IBM’s late cloud play aims for Amazon catch up appeared first on digitl.

comments powered by Disqus

Trending now »

Hot discussions in our forums right now:

Harvey Norman - Furniture - Too good to be true
Created by maxeon, last reply by gzt on 5-Oct-2015 20:48 (177 replies)
Pages... 10 11 12

Help me choose a BBQ
Created by ScuL, last reply by ScuL on 5-Oct-2015 20:11 (24 replies)
Pages... 2

New tyre advice please
Created by xyeovillian, last reply by martyyn on 2-Oct-2015 13:53 (47 replies)
Pages... 2 3 4

[FS] High End Computer for sale
Created by LennonNZ, last reply by LennonNZ on 5-Oct-2015 19:51 (21 replies)
Pages... 2

Red Peak to be added as a 5th option on the referendum
Created by Bee, last reply by MikeB4 on 2-Oct-2015 15:08 (186 replies)
Pages... 11 12 13

Amazon toolbar BS
Created by Rikkitic, last reply by freitasm on 5-Oct-2015 20:17 (16 replies)
Pages... 2

Bigpipe / Chorus insanity
Created by chrispchikin, last reply by chrispchikin on 3-Oct-2015 21:24 (71 replies)
Pages... 3 4 5

Can spark provide telephone in fibre only area?
Created by BinaryLimited, last reply by BarTender on 2-Oct-2015 19:47 (14 replies)