International Business Machines Corporation (IBM - Free Report) has been making efforts to strengthen its cloud based business. The company is now expanding its product portfolio to include object-based cloud storage services that are designed to aid customers in managing Big Data.
IBM has developed this cloud storage-as-a-service by combining the technologies from its own cloud and from data-storage software provider Cleversafe that it acquired last year for $1.3 billion.
IBM Cloud Object Storage basically advances its hybrid cloud offerings. This latest offering from IBM will give its clients a wide range of options for storing Big Data while also ensuring flexibility, efficiency and cost optimization.
It is expected that this service will be made available in the second quarter itself. The service will have various configurations to cater to all types of client requirements, right from users who access data infrequently to a comprehensive dedicated solution for more frequent users. Specifically, the service has been categorized into Nearline (for infrequent users), Standard (for high performance applications) and Dedicated (it will be a single-tenant system running on dedicated servers) for now.
Apart from this, clients will also have a choice of licensing models that is they can select from perpetual, subscription, or consumption licenses as per their requirement.
Also, the company is even providing flexibility in terms of storing both file and object data in a single data storage center and that too for all traditional and web-based applications.
For the last few quarters, IBM has taken important steps to develop its cloud based solutions. A number of established players like Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) and Alphabet’s (GOOGL - Free Report) Google have already gained significant traction in the cloud market. Amid such competition, IBM it seems is creating a niche for itself in the hybrid cloud market.
Hybrid cloud is a combination of public and private clouds that function independently but are connected together so that enterprises can get dual benefits. The adoption of hybrid clouds allows enterprises to have both on-premises computational infrastructure and cloud storage for core data. As a result, the firms are opting for hybrid cloud instead of conventional clouds.
We believe that IBM is positioning itself well to gain from the strength in this market. In 2015, IBM’s cloud revenues recorded 43% growth over the prior year.
At present, IBM carries a Zacks Rank #4 (Sell).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>