Sales at IBM are stabilizing. After years of asset sales and acquisitions to ready itself for tomorrow’s computing world, IBM is winning more business. Once a giant in hardware and PC, IBM is moving in the right direction by focusing on the cloud and data markets.
Analytics has and will always be in high demand. IBM’s GBS and powerful hardware – the z30 and POWER8 – are popular, because they fill the need for supporting analytics workload. In the cloud market, IBM grew sales in its last quarter. IBM’s cloud unit benefited thanks to customer interest in data analytics as a service.
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New initiatives
IBM’s Watson is expanding into healthcare, where the solution will integrate with cloud solutions. The company is also cross selling mobile and social solutions alongside Watson. In cloud, IBM added 41 cloud data centres, significantly increasing capacity.
Commerce is central
Commerce software is still strategically important for IBM. The company has 30,000 customer organizations, and nine of the top ten U.S. retailers and banks are running IBM’s commerce solutions.
Software
Middleware is still central source of sales for IBM, but enterprises should expect a greater emphasis on software as a service. Either way, IBM is providing solutions that have broad reach (cloud services) or enterprise security (middleware).
Challenges
IBM is very large as a conglomerate in IT. It has at least 15 or more sub segments that are each in complicated markets. Each segment requires laser like focus, because of the competition and changing dynamics. As soon as IBM gains momentum, the market might shift and today’s new technology becomes tomorrow’s obsolete project.
IBM’s push towards the cloud will pay off, but it would be better if its contract wins had less of the legacy components from the systems, software, and services.
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The technology sector is still thriving, but top companies are taking great talent away from firms like Microsoft or IBM.
Looking ahead, IBM’s foray in enterprise mobile apps and management should yield good products. Through its partnership with Apple, IBM is readying 10 new apps. Apps like Safe Site improve workplace safety, while the travel apps will help employees manage their work travel. For workers in need of field inspecting equipment, IBM and Apple made three new apps: Expert Resolve, Asset Inspect and Field Inspect. The former two apps help repair workers, while Field Inspect helps workers take photos/videos, then send it to the proper agency.
