IBM Invests $1B in PaaS in Quest for Cloud Leadership
IBM invests $1 billion to open its middleware to the cloud in a move to assume a leadership role in the cloud computing market.LAS VEGAS—IBM pledged to invest $1 billion in a cloud platform as a service (PaaS) to connect enterprise applications and data to the cloud, delivering its time-honored middleware via the cloud. IBM is opening its middleware to the cloud for the first time. Its middleware is the core of its $26 billion software business that runs core operations and connects vital business processes for major private and public sector organizations worldwide. In so doing, IBM is creating a massive new market opportunity for itself and millions of developers around the globe. Today, approximately 18 percent of developers create cloud-based applications, but that number is expected to rise to 67 percent, or 12 million, by 2019, according to Evans Research. IBM does not make $1 billion investments loosely. However, $1 billion seems to be the magic number for signifying that IBM is serious about a particular opportunity. The same figure was used to signal IBM's commitment to Linux (twice), to the cloud, to big data and analytics, and recently to launching a business unit to support IBM's Watson cognitive computing opportunity. Now, IBM is pledging another $1 billion to expand its position in the cloud arena.
At the IBM Pulse 2014 conference here, IBM said it is investing in the new era of hybrid cloud computing, which brings together the cloud and on-premises technologies. Hybrid clouds integrate the systems of engagement—built on social and mobile technologies, where individuals are increasingly engaging with organizations—with systems of record, where massive amounts of data and transactions are processed.