International Business Machines ( IBM Quick Quote IBM - Free Report) recently announced that IBM Cloud Satellite will render its hybrid cloud services generally available across all environments, including on-premises location along with any cloud platform as well as at edge environment.
IBM Cloud Satellite offers secured cloud services for customers across all environments, thereby helping them adhere to data privacy and sovereignty needs.
The tech giant further noted that the IBM Cloud Satellite will help customers in delivering low latency amid migration of workloads to the edge. At the same time, the satellite will provide security as well as data privacy and interoperability similar to hybrid cloud environments for the clients.
IBM added that industries in verticals like financial services, government, telecommunications and healthcare will benefit from the low latency obtained by manging data at the edge.
IBM in association with Lumen Technologies have incorporated IBM Cloud Satellite with the Lumen edge platform. This will facilitate customers to leverage hybrid cloud services in real-time while designing innovative solutions at the edge, noted the tech behemoth.
In addition, IBM’s Watson Anywhere will be available as a part of IBM Cloud Pak for Data as a Service, which is integrated with IBM Cloud Satellite. With Watson Anywhere, customers will be able to safely run AI and analytics workloads as services on all environments.
Apart from that, IBM stated that it was teaming up with over 65 ecosystem partners including the likes of
Cisco ( CSCO Quick Quote CSCO - Free Report) , Intel ( INTC Quick Quote INTC - Free Report) and Dell to design safe cloud services to aid clients in deploying workloads through IBM Cloud Satellite on any environment. IBM’s Hybrid Cloud Bet
IBM has been
focussing on hybrid cloud opportunity to turnaround its performance. Hybrid cloud market is anticipated to witness a CAGR of 18.73% between 2021 and 2026 and hit $145 billion. as per a report from Mordor Intelligence.
Notably, Red Hat acquisition, IBM’s largest cloud-based acquisition, helped the company to strengthen competitive position in the hybrid cloud market and boost its boost containerized software capabilities
The tech behemoth is now acquiring smaller but extremely cloud-focused companies/start-ups to meet its hybrid cloud vision. Some of its recent buyouts include Instana, Nordcloud, Expertus, and TruQua Enterprises LLC.
IBM announced the split of its business in two separate companies to capitalize on this trend, in October 2020. The tech giant will spin off (tax free) Managed Infrastructure Services, a unit of its Global Technology Services segment, into a new company by the end of 2021. IBM recently announced that the new company will be helmed by Martin Schroeter as a CEO.
However, escalating costs on hybrid cloud platform amid stiff competition in the cloud vertical from leading players like Amazon Web Services, Microsoft’s ( MSFT Quick Quote MSFT - Free Report) Azure and Google Cloud are major headwinds. Also, increasing debt levels amid extensive restructuring endeavours put pressure on the stock.
IBM currently carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Hottest Tech Mega-Trend of All
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