IBM Sees 2015 Growth in Cloud, Security and Systems

By Darryl K. Taft  |  Posted 2016-01-24 Print this article Print
IBM logo

San Francisco-based Ustream is a provider of cloud-based live video streaming services. The move will extend the IBM Cloud platform to help enterprise clients unlock the value of video, a rapidly evolving digital media and data asset. Financial terms were not disclosed.

Ustream provides cloud-based video streaming to enterprises and broadcasters for everything from corporate keynotes to live music concerts. The company streams live and on-demand video to about 80 million viewers per month for customers such as NASA, Samsung, Facebook, Nike and The Discovery Channel.
"We're acquiring Ustream to accelerate our focus on live video streaming," Steve Canepa, general manager of Global Media & Entertainment Industry at IBM, told eWEEK.

Meanwhile, in its systems unit, IBM's z Systems mainframe revenue grew 16 percent and Power systems grew 4 percent.

"Our Systems Hardware segment revenue was $2.4 billion," Schroeter said. "This was the fourth consecutive quarter of growth in both z Systems and Power. We have continued to deliver innovation to our systems to enable them to run the most contemporary workloads. In fact, about half of our systems segment revenue in 2015 was to address analytics workloads, or hybrid and private clouds."

IBM's strategy for its systems business has begun to pay off. In 2014, IBM Systems began one of the largest transformations in its history, realigning the business to strategic, high-value areas in IT. The company divested its Intel x86-based System x business to Lenovo and microelectronics semiconductor manufacturing business to GlobalFoundries. A massive $3 billion investment in silicon research to drive the next generation of chip innovation would follow. These moves represented a focus on the future of IT infrastructure and a doubling down on IBM's dedication to its hardware business.

Finally, IBM announced that its security business grew 12 percent for the year--gaining more market share with double-digit growth for the second consecutive year. Driving the growth has been IBM's focus on security intelligence and security services engagements. According to the new numbers, IBM Security is now a $2 billion business. Some of the moves in 2015 that helped spur this growth include IBM taking a new open security approach to help the industry battle highly organized cyber-crime. Specifically, IBM opening its database of cyber-threats and delivering the QRadar Security Intelligence platform with the new Security App Exchange stood out as key factors.

And with nearly $18 billion in analytics revenue, IBM is one of the largest analytics providers and is into new areas with its Watson Health and Watson Internet of things initiatives.

"The continuing good news regarding the company's strategic imperatives is evidence of the strength of IBM's strategy in these areas," said Charles King, principal analyst at Pund-IT. "The growth of its cloud services efforts was especially impressive, validating both its SoftLayer acquisition and its global cloud data center development approach.

"As you watch some of IBM's competitors struggle to become viable cloud service players or abandon the space entirely, the company's proactive approach to cloud has been borne out time and again," he continued. "Plus, with strategic imperatives now delivering more than a third of IBM's total revenues, the company seems solidly on the right track. That said, things could obviously be better in IBM's traditional businesses though there were some bright points. In particular, I'd point to the solid performance of both the z Systems mainframe and Power Systems groups."


Submit a Comment

Loading Comments...
Manage your Newsletters: Login   Register My Newsletters

Rocket Fuel