Understanding IBM’s Partnership with Cisco
Increased adoption of IBM’s security offerings
So far in this series, we’ve discussed International Business Machines’ (IBM) GTS (Global Technology Services) segment’s performance in fiscal 2Q17, wherein strategic imperatives ruled. Security has a considerable prominence in IBM’s Strategic Imperatives segment. And with sophisticated cyber attacks like WannaCry and Petya on the rise, it’s likely high time for IBM to enhance its security portfolio.
In 2Q17, IBM’s offerings Resilient and QRadar saw increased adoption and reported growth, which indicates that customers are eager to strengthen not only their detection abilities but also their responses to security threats.
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IBM’s security partnership with Cisco
In 2Q17, IBM announced a partnership with Cisco Systems (CSCO) to address the ever-increasing peril of cyber crime. The partnership covers three core areas: product integration, security services, and threat intelligence.
IBM’s X-Force and Cisco’s Talos group are prominent cybersecurity research groups in the space.
An end-to-end experience
Cisco Systems is the largest security vendor by revenue, with more than 15% of the market share. Partnering with Cisco should provide IBM with an avenue for selling security offerings that can be successfully deployed and configured and also have full support, providing an end-to-end experience for traditional and managed services. Cisco would benefit from the partnership with IBM because it would get access to latter’s accounts.
This partnership holds additional significance as spending on cybersecurity has been forecast to rise. According to Brian Lord, the managing director of cyber and technology at PGi (a cybersecurity firm), as outdated IT (information technology) systems get updated, spending on cybersecurity protection will likely rise 10.0% in the UK and Europe by 2020.