After suffering major losses to Amazon in the rapidly emerging cloud services business, IBM wants to enhance its market share by looking at the global market, shared Sudhanshu Bhandari, senior analyst at Forrester Research, “After losing the federal contract, IBM is trying to win lost ground and build thought leadership globally.” IBM recently lost US$ 600 Million (Rs. 3,700 Crores) Central Intelligence contract to Amazon. The company appealed, but even the courts favored Amazon.
Why is IBM so interested in cloud based services?
Globally, the PC market has been shrinking at an alarming rate. Smartphones and tablets have been eroding the sales of PCs in general, to quite a large extent. Such a situation has forced multiple companies to either join the smartphone making companies & compete on their turf or think of other avenues.
Cloud based services is a newly emerging market which requires expertise in components making & server technology, both of which are IBM’s forte. The company recently took-over SoftLayer, a significant player in the cloud services market, to get a head-start. With SoftLayer, IBM wants to enter the cloud service market with formidable force, shared Bhandari, “Over the last few quarters, IBM has struggled and continued to see a drop in the revenue from traditional business. With SoftLayer, they are trying to take the public cloud story forward.”
Amazon is a formidable player by itself. With multiple initiatives, the company has nearly cornered the market with estimated revenue of about US$ 3 Billion from cloud computing services alone. But, given India’s vast untapped potential & poor dissipation of technology, cloud computing is certainly a dependable market where traditional expertise of IBM will certainly come in handy.
Image Source | Inside Cloud