IBM Invests $1.2B in Cloud Infrastructure

By Darryl K. Taft  |  Posted 2014-01-16 Print this article Print

An expanded global cloud footprint will help IBM clients improve data governance capabilities and comply with local market and country regulations such as HIPAA and Sarbanes-Oxley (SOX) more efficiently. Further expanding its global cloud network, IBM will provide more vendor choice for clients as well as delivery options, including bare metal cloud instances

With these global data centers IBM SoftLayer is able to deliver high performance services to locales across the globe quickly. SoftLayer's high performance private network also makes it possible to build global applications that do not require or use the public internet to connect to servers that sit in multiple countries and helps avoid any disruptions caused by other traffic on a public network.

This builds on SoftLayer's founding principal of creating a global Infrastructure as a Service (IaaS) platform that is widely distributed to mitigate any potential downtime for clients. These data centers distributed across the globe enable clients to pick which data center they want services in, and all services are available in all data centers.

Since its acquisition in 2013, IBM SoftLayer has served nearly 2,400 new cloud clients. IBM’s cloud investments to date, including SoftLayer, have made it easier and faster for clients around the world to adopt cloud computing. With these new investments, IBM will be able to meet growing client demand for high value dynamic cloud capabilities while building towards its goal of achieving $7 billion in annual cloud revenue by 2015, company officials said.

IBM cloud customers include born-on-the-Web firms such as Cloudant, SilverSky and Green Status Pro as well as enterprises such as Ameriprise Financial, AT&T, Honda Motors, Pacific Gas & Electric, L'oreal, Grupo Zurich, Rent-a-Center,  Visa, the US Open and UniCredit.

One client, Virgin Atlantic, has used IBM's cloud-based SaaS marketing solutions to improve its relationship with customers through better website design choices that convert increased interest into more bookings, IBM said. As a result, the airline has seen a 10 percent increase in flight books and a 7 percent increase in average booking value.

IBM has served more than 30,000 cloud customers and has more than 100 cloud SaaS solutions, thousands of experts with deep industry knowledge and a network of 40 new centers worldwide global cloud delivery centers.

Since 2007, IBM has invested more than $7.5 billion in 18 acquisitions  to accelerate its cloud initiatives and build a high value cloud portfolio. IBM holds 1,560 cloud patents focused on driving innovation. In addition, IBM processes more the 5.5 million client transactions daily through the company’s public cloud.


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