IBM Corporation (IBM - Free Report) has announced the addition of four new cloud data centers in the U.K. that are capable of crunching huge amounts of data using their in- built cognitive intelligence technology.
The opening of the new cloud data centers is a step forward by IBM to meet the growing demand for cloud computing in the U.K. and across the globe as well as provide innovative solutions to its clients. IBM Cloud will now have six cloud data centers in the UK, 16 cloud data centers throughout Europe and over 50 cloud data centers throughout the world.
We note that in Sep 2016 IBM had announced its first public cloud data center in the Nordics region. The Fetsund-base data center offers the full range of IBM Cloud infrastructure services, including bare metal and virtual servers, storage, security services, and networking. (Read More: IBM's First Data Center in Nordics to Support Cloud Growth)
The new datacenters in the UK are also expected to operate along similar lines and provide enhanced features to its clients for better productivity.
Why This Move?
Per an IDC report, worldwide spending for public cloud services is estimated to reach a whopping $195 billion by 2020, which is currently growing at a CAGR of 20.4%. Moreover, as per a report by Cloud Industry Forum, cloud adoption in the UK has increased by 84% over the last five years.
Given the huge scope for growth in the cloud, IBM is trying its best to rake in more clients for its services. To achieve this, the clients subscribing to IBM’s cloud datacenters in the UK will have free access to IBM Watson, Blockchain, Internet of Things (IoT) and other useful open application program interfaces (APIs).
Zacks Rank & Key Picks
At present, IBM has a Zacks Rank #3 (Hold).
Some better-ranked stock in the broader technology space are Applied Optoelectronics, Inc. (AAOI - Free Report) , Acacia Communications, Inc. (ACIA - Free Report) and Advanced Energy Industries, Inc. (AEIS - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Notably, the consensus estimate for Applied Optoelectronics’ current year improved to 81 cents from 51 cents over the last 30 days.
The consensus estimate for Acacia’s current year improved to $2.33 from $2.31 over the last seven days.
Last but not the least, the consensus estimate for Advanced Energy’s current year improved to $2.67 from $2.51 over the last 30 days.
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