AWS was the first cloud computing and offering infrastructure as a service in 2008 and has never looked back as it launches new services at a breakneck pace and is creating its own compute stack that aims to be more efficient and pass those savings along. Will Healy is a freelance financial writer who has had a lifelong interest in the stock market, along with numerous, less-useful pursuits. Stock Advisor launched in February of 2002. “Now the two top dogs running IBM are cloud purists,” said Steve Duplessie, founder of Enterprise Strategy Group. Here are three key takeaways from our 2020 cloud computing predictions: IBM and Oracle will retreat to familiar territory while Alibaba threatens Google. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. This is up from 4% in 2012. Corrects company valuation in ninth paragraph. Hillery Hunter, IBM Fellow and company CTO, oversees strategy for the company's infrastructure and cloud-native offerings. This even applies to governments themselves, as the U.K. recently signed a public cloud agreement with IBM. This is a false choice. IBM has a lot of catching up to do in the trillion-dollar cloud market where Amazon and Microsoft are far out in front, followed by Alphabet Inc.’s Google. This creates two industry-leading companies, each with strategic focus and flexibility to drive client and shareholder value. Wall Street Can’t Deci... A Stock Trader’s Guide to the Global Covid Vaccine Rollout, Vaccine D-Day Hits With 2.9 Million Doses Set for Delivery, CDC Advisers Vote to Recommend Pfizer’s Covid-19 Vaccine, Musk Urges Tesla Workers to Boost Output Through End of Year, Pfizer Vaccine Cleared in U.S., a Landmark in Covid-19 Fight, Krishna takes the reins after eight years of shrinking revenue, Big Blue has lagged behind nimbler rivals in cloud computing. We look at it's foundation on containers and Kubernetes, and the importance of the Red Hat acquisition that brought Red Hat OpenShift that is at it's heart. IBM 18 Nov, 2020, 14:00 GMT. An introduction to the IBM's differentiating open, hybrid multi-cloud strategy, and where Cloud Paks fit into this. Amazon, Microsoft, Alphabet, and Alibaba are among its peers in this sector. Still, 47 of the Fortune 50 companies utilize the IBM cloud, and the current valuation could become more attractive if the cloud were to make up an increasing percentage of the company's revenue. IBM Brings Open Hybrid Cloud Strategy To 5G And The Edge. IBM (NYSE: IBM) today announced third-quarter 2020 earnings results. He ran a live demonstration of some of the hybrid cloud products from his Mac laptop. Chapter 3: Sales (Volume) and Revenue (Value) by Region (2013-2020) 22-Jul-2020. Cameron Clayton is general manager of IBM’s hybrid cloud ecosystem and weather. If processors based on Arm become the norm in the data center, the industry can thank the gravitational pull of AWS… The $6.3 billion in cloud revenue represented a 30% increase from the same quarter last year. European States Harden Lockdowns as Vaccine Looms: Virus Upd... Nordic Nations Set Pace in Electric Planes After Green-Cars... N.Y. Cases Rise Further and California Hits Record: Virus Up... Roblox to Delay IPO as Affirm Weighs Its Timing. IBM and Oracle will not exit the hyperscale public cloud market, now dominated by AWS, Microsoft, Google, and Alibaba. Rometty, who will step down as CEO effective April 6, will stay on as executive chairman through the end of the year. Wall Street Can’t Decide, Merkel Orders Germany Into Hard Lockdown as Infections Swell, Oracle Moves Headquarters to Texas, Joining Valley Exodus. The independent company, which will be known initially as ‘NewCo’, will be created towards the end of 2021. 4-April-2020. Rometty called it a “game changer” for the company. Yr/yr Red Hat revenue growth @cc, normalized for historical comparability **TTM through June 30, 2020. “I showed an early version, not yet complete, of what we could do to about 60 or 70 senior leaders from inside IBM,” Krishna said in an interview last year. At the end of his answer, Krishna said: “Now that wasn’t quite two sentences, but it was no more than two minutes.” He then laughed, adding “was that all intelligible?”, IBM’s hybrid cloud strategy was “a long time coming,” Krishna said. Market data powered by FactSet and Web Financial Group. Schlumberger operates in more than 120 countries. Another recent addition, French banking group BNP Paribas, also joined IBM's Industry Cloud Advisory Council. Strategy. Using IBM’s Hyper Protect Services, both in the IBM Cloud® and on-premise, the data … In an interview last February, Krishna was asked to describe hybrid-cloud computing in two sentences. “Rometty initiated that next fundamental transition or transformation for the company, but that went too slowly for a lot of people,” Cortada said. As a participant at the digital conference Nordic Cloud Strategy 2020, you can live stream presentations from CIOs, experts and leading suppliers, ask questions and participate in the digital breakout session - all … Whitehurst has been running a smaller but much faster growing company at the cutting edge of cloud migration, said Stifel Nicolaus & Co. analyst David Grossman. IBM announced it will accelerate its hybrid cloud growth strategy to drive digital transformations for its clients. “IQ levels on the campus are high, but even then he stood out as smart and articulate,” Krishnan said. OpenShift uses Kubernetes, an open-source platform that manages workflows and services in portable containers. This lets them remake themselves before it’s too late.”. Large Red Hat deals defined as >$10m. Nonetheless, the valuation and payout are not necessarily drawing investor interest. Last year, it doubled down on the cloud by acquiring Red Hat for $34 billion. CD Projekt Changes Developer Bonus Structure After Buggy Release, Sweden’s Covid Workers Are Quitting in Dangerous Numbers, Are Tesla’s Shares Worth $90 or $780? Four workstreams will achieve our vision. ARMONK, N.Y. , Nov. 18, 2020 /PRNewswire/ -- IBM (NYSE:IBM ) today announced a definitive agreement to acquire Instana , an application performance monitoring and observability company. The good news is that the cloud remains on track for rapid growth. Have a confidential tip for our reporters? IBM’s New CEO Is Mastermind ... IBM’s hybrid cloud strategy was “a long time coming,” Krishna said. "We're excited to see the very strategic investments that we're making really pay off in our revenue results as well as in significant partnerships with major companies," said Hunter. Yr/yr revenue growth @cc The cloud plays an increasingly significant role across the company. Let's conquer your financial goals together...faster. Krishna, 57, has spent his entire career at IBM and witnessed the company’s ups and downs as it went from the world leader in computing and IT services to missing the cloud revolution and falling behind nimbler, younger rivals like Amazon. The company was coming off of 19 consecutive quarters of shrinking revenue and lagging far behind rivals in cloud computing, the lucrative new field in business technology, when Krishna stood in front of a crowd of executives, including Chief Executive Officer Ginni Rometty, at the company’s Armonk, New York, headquarters. Nordic Cloud Strategy 2020 is an interactive digital conference. First articulated by ex-CEO Ginni Rometty , that strategy was emphasized again this week by Rometty’s successor, Arvind Krishna, while discussing the company’s quarterly results. In a recent interview, she outlined three things investors should know about its cloud offerings and strategy. IBM's overall revenue is still falling, and the stock price has trended downward for the last seven years. new partners added to IBM’s and/or Red Hat’s hybrid cloud ecosystem >20% IBM Cloud revenue growth** *TTM through June 30, 2020. Grand View Research estimates that the global cloud industry will benefit from a compound annual growth rate (CAGR) of 14.9% per year through 2027. Though generally respected by her peers, Rometty, 62, inherited many challenges that she was ultimately unable to overcome. IBM to Acquire Instana as Company Continues to Advance its Hybrid Cloud and AI Strategy News provided by. International Business Machines (NYSE:IBM) has long been a prominent name in the technology industry. Strengthens collaboration with PMsquare in Data and Analytics to help customers in the country Emerge Smarter from the pandemic. Blog. More specifically, IBM's hybrid cloud has led it to focus on one type of enterprise: heavily regulated industries. As IBM prepares to split into two companies, it is honing its hybrid cloud strategy.And the indirect channel will prove vital to the success of that effort. Hunter also credits IBM's hybrid cloud with much of the company's success. During her tenure, revenue and IBM’s valuation shrank by 25%, in opposition to other tech companies and the broader market, which have seen spectacular gains. Consequently, IBM's hybrid cloud is well-suited for helping the corporate giant better manage differing local regulations and data residency requirements around the world. Let's look at those attributes and what they mean for IBM stock. “Our clients see the value of IBM’s hybrid cloud platform, based on open technol They are all developing similar software in the hybrid-cloud market too. IBM cloud is a great product by IBM, henceforth my company has used it with trust and joy. In today’s world, enterprises are constantly trying to strike a balance between moving faster and mitigating risk. Krishna will also benefit from a strong partner in Jim Whitehurst, the 52-year-old CEO of Red Hat who was elevated to IBM president, the first time the company has given an executive that title on its own. Companies want: agility balanced with enterprise-grade security. Hunter said that organizations turn to IBM due to the "value propositions around having a secure and open hybrid cloud strategy." Ivan Feinseth of Tigress Financial Partners says it’s a good time for change at IBM. Given the possibilities, IBM is a stock that investors should at least keep on their watch lists. Former longtime IBM employee and historian James Cortada, a senior research fellow at the University of Minnesota, said hybrid cloud represents the company’s third radical transformation in its history. For months Krishna, the head of IBM’s cloud computing division, had been thinking about a way to connect clients’ most important data, which was often held on private servers, to public cloud servers run by others including IBM, Amazon.com Inc. and Microsoft Corp. “If a company intends to make a serious shift or change, he’d be the man.”. Are Tesla’s Shares Worth $90 or $780? Through OpenShift, Red Hat can provide a consistent platform across multiple types of cloud environments. IBM (NYSE: IBM) today announced second-quarter 2020 earnings results. from the University of North Texas, and an MBA in finance and strategy from the University of Texas at Dallas Jindal School of Management. I think if we’d done it in 2015 it might’ve been too early.”. Additionally, IBM will separate its Managed Infrastructure Services unit of its Global Technology Services division into a new public company ("NewCo"). Confidentiality and Governance of Cloud Services. Analysts say Krishna is up for the task. AWS has expanded well beyond cloud compute and storage. However, the tech stock has suffered in recent years as many of its divisions have seen steady drops in revenue. IBM's hybrid cloud also helps global companies better deal with individual-country regulations. Hunter said that IBM has released more than 100 of its software products on the OpenShift platform. See you at the top! The combination of the two of them sets up a “very interesting and complimentary team.”. IBM announced today it will accelerate its hybrid cloud growth strategy to drive digital transformations for its clients. IBM also promoted Arvind Krishna, who previously headed the cloud and cognitive software division, to the CEO position in April. January 31, 2020, 4:59 PM EST Corrected February 3, 2020, 7:50 AM EST 6:30. This helps organizations manage functions seamlessly across public, private, and on-premise clouds. Additionally, IBM will separate … Here Are 3 Stocks to Buy and Hold Long Term, IBM Announces Its Second Cloud-Related Acquisition This Week, TruQua to Become IBM's Latest Cloud-Related Acquisition, 3 High-Yield Tech Stocks Currently on Sale, 2 Cheap Dividend Stocks You Can Buy Right Now, Copyright, Trademark and Patent Information. To change this, IBM has turned to the cloud. “The strong performance of our cloud business, led by Red Hat, underscores the gr IBM shares gained 4.5% Friday after the announcement of the leadership change, valuing the company at about $126 billion. This focus is due in no small measure to the Red Hat acquisition and its OpenShift platform. Cumulative Growth of a $10,000 Investment in Stock Advisor, 3 Things IBM Wants You to Know About Its Cloud Strategy @themotleyfool #stocks $IBM, Got $3,000? Share this article He gave a thorough and speedy analysis of the intersection between public cloud, private cloud, data centers, applications, existing infrastructure and other technical terms. 3 Things IBM Wants You to Know About Its Cloud Strategy IBM is taking a unique approach to be successful in an increasingly crowded cloud industry. The basis of IBM’s hybrid cloud strategy revolves around its assertion that about 80 percent of enterprise workloads have yet to migrate to the cloud. He holds a bachelor's degree from Texas A&M Univesity, and M.S. IBM Cloud: Uniquely Positioned to Optimize Costs As reseller partners approach a slew of new opportunities, it’s helpful to remember how IBM cloud solutions directly address the need for cost optimization. Much of that growth came in the form of partnerships. Finally he proposed a way, creating IBM’s so-called hybrid multi cloud strategy. In fact, most enterprise adopters of public cloud services use multiple providers. Will pursued his passion for writing after working in the corporate world as both an analyst and an insurance sales professional. Updated Oct 9 IBM has announced it is making the managed infrastructure services part of its global technology business (GTS) an independent company to continue its ‘maniacal’ focus on open hybrid cloud and artificial intelligence (AI).. Despite these attributes, investors want to know how such deals help IBM stock. Here are three examples. It stores data in an easy and secure way. In July of 2017, International Business Machines Corp. executive Arvind Krishna walked into a routine meeting with senior leaders and delivered a surprise pitch that changed the course of the iconic 108-year-old company’s future. The acquisition will help businesses better manage the complexity of modern applications that span the hybrid cloud landscape. Krishnan studied with Krishna at India’s premier engineering school, the Indian Institute of Technology Kanpur. As the new CEO of IBM, Krishna would be a “Nadella-like” leader – calm but deep, firm but unaggressive, said Rishikesha Krishnan, a professor of strategy at the Indian Institute of Management in Bangalore. ... IBM’s latest entries into the 5G and edge battlegrounds were introduced at its Think 2020 virtual event this week. IBM finally knows where it is going with Red Hat and a new strategy called "hybrid multi cloud," making IBM stock ... machines-finally-has-a-strategy-that-can-drive-ibm-stock/. IBM’s Hyper Protect solutions offer clients turnkey security, out of the box, with full pervasive encryption to protect data integrity and confidentiality while at rest, in flight or in use. On Thursday, IBM announced that Rometty would be stepping down after almost 40 years at the company and Krishna would be taking over. This approach has long been useful with international financial entities using IBM's financial services cloud, but Hunter said this approach also helped bring about a hybrid cloud deal with energy giant Schlumberger. When former IBM cloud leader Arvind Krishna ... August 13, 2020 . The 10 biggest public cloud providers will command, at a minimum, half of the total public cloud market until at least 2023. On a recent trip to India, he spent hours in the IBM cafeteria chatting to whomever approached him, according to a person who observed the interaction but didn’t want to be named describing a private event. It has a data migration feature with high security which increases the efficiency of work. Together, Krishna and Whitehurst bring software to the core of the company. Krishna’s elevation is reminiscent of the appointment of Satya Nadella, Microsoft’s cloud chief, into the CEO role in 2014. Moreover, all these major competitors offer competing hybrid cloud products. Krishna joined IBM in 1990 after studying in Kanpur and obtaining a Ph.D. in electrical engineering from the University of Illinois Urbana-Champaign. “The old IBM died a while ago and they had to change. Returns as of 12/13/2020. IBM launched its hybrid cloud product three months later. NEW YORK, Jan. 14, 2020 /PRNewswire/ -- Broadridge Financial Solutions, Inc. [NYSE:BR], a global Fintech leader and part of the S&P 500 ® Index, and IBM Services [NYSE:IBM], today announced an agreement to bring new cloud-based solutions to Broadridge's clients in the financial services industry. The company has not wasted any time putting this to work. As part of the initiative, IBM is also working with leading businesses including Emirates NBD, du, Aramex, and Banco Santander. 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