IBM Plans to Tap the $105 Billion Cloud Video Market with Ustream



IBM intends to tap $105 billion market with Ustream

Previously in this series, we discussed IBM’s recent acquisition of Ustream that complemented its earlier acquisition of Clearleap in the cloud video space. Coupled with Clearleap, Aspera, and Cleversafe, UStream should offer IBM Cloud a wider access to alternatives in this space. This should enable the company to help developers in building apps that can make use of video capabilities.

If we go by IBM estimates, the cloud-based video market is likely to become a $105 billion opportunity by 2019. The formation of the newly Cloud Video Services unit, as discussed in Part 8 of this series, should enable IBM to harness opportunities in the mobile, advertising, storage, and communications areas.

In the public cloud space, IBM’s cloud offering SoftLayer competes with Amazon’s (AMZN) AWS (Amazon Web Services), Microsoft’s (MSFT) Azure, and Google’s (GOOG) Cloud Platform.

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Ustream could help IBM boost its Strategic Imperatives segment

Ustream is likely to boost IBM’s Strategic Imperatives segment, which relates to IBM’s investment in cloud, analytics, mobile, social, and security technologies. IBM’s Strategic Imperatives grew 24% while its cloud revenue grew 54% on a year-over-year basis in fiscal 4Q15. IBM’s Strategic Imperatives’ contribution rose to 35% in fiscal 2015.

Investors who want exposure to IBM can consider investing in the iShares Russell 1000 ETF (IWB). IWB, which has 8.5% exposure to application software, invests 0.61% of its holdings in IBM.


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