Hybrid cloud computing, artificial intelligence (AI), and quantum computing are amongst the biggest emerging technologies in the 21st century. While there's already been a great deal of progress in these areas by companies like IBM and many others, there's still a long road ahead before any of these technologies are fully realized.
As a result, IBM has already switched much of their focus to these next-gen technologies. In order to bolster their efforts even further, they're even getting rid of some of their current business lines – including managed services.
Taking a Look at the Move
IBM's managed services business, better known as the Managed Infrastructure Services group within its Global Technology Services division, was worth $19 billion going into 2020. While there aren't any signs that the business unit was struggling, a recent statement indicates that their client base is beginning to diverge into other technologies.
Arvind Krishna, chief executive officer (CEO) of IBM, summarized their motives by saying: "Client buying needs for application and infrastructure services are diverging, while adoption of our hybrid cloud platform is accelerating. Now is the right time to create two market-leading companies focused on what they do best. IBM is laser-focused on the $1 trillion hybrid-cloud opportunity."
The move will ultimately provide the foundation for a brand new firm, currently dubbed "NewCo," that will take over the managed infrastructure services that IBM once provided. Although the new company won't actually be created until 2021, it already includes 90,000 employees and 4,600 clients spread out across 115 countries.
Embracing a New Business Model
Without being hampered by managed infrastructure services, IBM can bolster their focus in the areas of hybrid cloud computing, next-gen AI, and quantum computing.
Arvind backed up his earlier statement by saying: "Hybrid cloud and AI are swiftly becoming the locus of commerce, transactions, and over time, of computing itself. Our decision is also the logical next step in our pursuit of the $1 trillion hybrid cloud opportunity."
It's interesting to note that IBM's new hybrid cloud model is actually the product of their 2019 acquisition of Red Hat. Not only did it let IBM build its hybrid cloud platform in the first place, but it made it possible for them to include support for on-premises, private, and public cloud servers.
That deal, which cost IBM approximately $34 billion, represented a major shift in IBM's IT priorities, and it's already resulted in double-digit growth within the hybrid cloud market. It's unclear if IBM had planned this all along or if they were spurred on by the explosive growth of the hybrid market as of late, but their plan moving forward is as clear as can be.
According to their website, IBM's new hybrid cloud model offers industry expertise, proven security, compatibility, automation, modernization, and innovation. In order to promote their new hybrid cloud service even further, they even offer a free trial.
For more information on IBM, including details about their hybrid cloud model or any of the other services they provide, please visit their official website at www.ibm.com.
IBM Moves Away from Managed Services in Favor of the Hybrid Cloud
No comments yet. Sign in to add the first!