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 the one billion dollar quarterly profit barrier last October – and it looks like IBM is anticipating that by 2015, it’ll have similar bragging rights.
The US company announced its intentions today to pump over $1.2 billion into increasing its presence in the global cloud space.
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 acquisition SoftLayer.
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 by 2020.
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 business practices.
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 their bets.
Image by Nirak