IBM has $7 billion dollar ambition for cloud in 2015
Having announced its sky high targets for the year ahead, IBM puts its money where its mouth is with further $1.2 billion commitment to company offerings.
AWS, the undisputed titan of the cloud space, breached
one billion dollar quarterly profit barrier last October – and
it looks like IBM is anticipating that by 2015, it’ll have similar
The US company announced its intentions today to pump
$1.2 billion into increasing its presence in the global cloud
Since 2007, IBM has pumped over
seven billion dollars into developing its cloud portfolio – and
it expects to start breaking even by the same amount by next year.
These investments include 15 acquisitions geared towards
accelerating cloud initiatives and bolstering the value of IBM’s
total virtual storage portfolio.
This latest hefty investment will go towards the
construction of up to 15 new data centres around the world,
bringing IBM’s total count to 40, allowing it to expand its cloudy
offerings and potentially penetrate new clients and markets.
As well as allowing the company to reach new clients,
IBM is quoted by Reuters as stating that the move was, “based on
growing client demand for high-value cloud”. IBM said the global
cloud market is estimated to grow to $200 billion by 2020.
To support delivery of cloud services, IBM will use
web hosting technology from recent
Although there’s been speculation that revelations of
breaches of cloud security by parties such as the
NSA would be massively damaging to this burgeoning market,
analysts still reckon that the market will blow up to $200 billion
The bulk of this growth will be driven by businesses
and government agencies deploying cloud services to market, sell,
develop products, manage their supply chain and transform their
Still, with Amazon continuing to gobble market share
at a rate of knots, IBM has its work cut out – but, with potential
buyers projected to grow apace, they’re apparently happy to hedge
Image by Nirak