IBM has been named number one in private clouds by independent technology market research firm Technology Business Research (TBR) as well as number one in TBR’s hybrid cloud environments survey. Ironically, as fast as IBM has been trying to distance itself from its legacy platform heritage it brings an advantage when it comes to clouds for some customers. “A footprint in legacy IT solutions and management is a strong predictor of private cloud vendor success, as private cloud solutions are typically the first step toward hybrid IT environments,” wrote TBR Cloud Senior Analyst Cassandra Mooshian.
Courtesy of IBM: 1800 FLOWERS Taps IBM Cloud
Coming out on top of IBM’s 2Q16 financials reported here, were the company’s strategic initiatives, mainly cloud, analytics, and mobile, which generated positive revenue results. The TBR reports provide welcome reinforcement for IBM strategy doubters. As reported by IBM, the annual run rate for cloud as-a-service revenue — a subset of total cloud revenue — increased to $6.7 billion from $4.5 billion in the second quarter of 2015. Revenues from analytics increased 5 percent. Revenues from mobile increased 43 percent while security revenue increased 18 percent.
The TBR report also noted IBM leadership in overall vendor adoption for private cloud and in select private cloud segments due to its broad cloud and IT services portfolio, its variety of deployment options, and accompanying integration and optimization support. As a result, the company’s expertise and knowledge of both cloud and legacy technology make it easier for customers to opt for an IBM migration path to both private and hybrid clouds.
TBR also specifically called out of IBM cloud-friendly capabilities, including the comprehensive portfolio of cloud and hardware assets with security; cloud professional services that can span a customer’s entire IT environment; and a vertical approach to cloud combined with Watson technology. As for hybrid clouds, Kelsey Mason, Cloud Analyst at TBR, noted in the announcement: “Hybrid integration is the next stage in cloud adoption and will be the end state for many enterprise IT environments.” Enterprise hybrid adoption, TBR observed, now matches public adoption of a year ago, which it interprets as signaling a new level of maturity in companies’ cloud strategies.
What really counts, however, are customers who vote with their checkbooks. Here IBM has been racking up cloud wins. For example, Pratt & Whitney, a United Technologies Corp. company in July announced it will move the engine manufacturer’s business, engineering, and manufacturing enterprise systems to a fully managed and supported environment on the IBM Cloud infrastructure.
Said Brian Galovich, vice president and chief information officer, Pratt & Whitney, in the published announcement: “Working with IBM and moving our three enterprise systems to a managed cloud service will give us the ability to scale quickly and meet the increased demands for computing services, data processing and storage based on Pratt & Whitney’s forecasted growth over the next decade.
Also in July, Dixons Carphone Group, Europe’s largest telecommunications retail and services company as the result of a 2014 merger, announced plans to migrate to the IBM Cloud from IBM datacenters in the United Kingdom to integrate two distinct infrastructures and enable easy scaling to better manage the peaks and valleys of seasonal shopping trends. Specifically, the company expects to migrate about 2,500 server images from both enterprises with supporting database and middleware components from both infrastructures to an IBM hybrid cloud platform that comprises a private IBM Cloud with bare metal servers for production workloads and public IBM Cloud platform for non-production workloads.
As a merged company it saw an opportunity to consolidate the infrastructures by leveraging cloud solutions for flexibility, performance and cost savings. After assessing the long-term values and scalability of multiple cloud providers, the company turned to IBM Cloud for a smooth transition to a hybrid cloud infrastructure. “We can trust IBM Cloud to seamlessly integrate the infrastructures of both companies into one hybrid cloud that will enable us to continue focusing on other parts of the business,” said David Hennessy, IT Director, Dixons Carphone, in the announcement.
As IBM’s 2Q16 report makes clear, once both these companies might have bought new IBM hardware platforms but that’s not the world today. At least they didn’t opt for AWS or Azure.
DancingDinosaur is Alan Radding, a veteran information technology analyst and writer. Please follow DancingDinosaur on Twitter, @mainframeblog. See more of his IT writing at technologywriter.com and here.
Tags: analytics, Big Data, Cloud, enterprise hybrid cloud adoption, hadoop, hybrid cloud, IBM, IBM legacy platform heritage, Linux, mainframe, mobile, private cloud, technology, Technology Business Research (TBR)