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IBM Continues to Focus on Increasing Data Center Capacity

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Jun. 1 2017, Updated 4:06 p.m. ET

IBM opens its fourth data center in Australia

Last week, IBM (IBM) opened a data center in Sydney, Australia, to meet increased demand for its Watson and Bluemix platforms. The newly opened data center marks the fourth Australian (EWA) data center by IBM, which has now 55 data centers in 19 countries globally.

Watson is IBM’s AI (artificial intelligence) and cognitive computing platform. Bluemix is a cloud foundry–based platform that enables developers to build, deploy, and manage apps across the cloud space.

Highlighting the importance of onshore hosting, Tony Armfield, vice president of IBM Cloud in Australia and New Zealand, said, “We know our enterprise clients want to keep their data local.”

Through its data centers, IBM intends to provide Watson analytics, Bluemix, blockchain offerings, and backend and analytics platforms for the IoT (Internet of Things) space.

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Cisco’s cognitive collaboration team could threaten Watson

Recently, Cisco Systems (CSCO) acquired MindMeld to empower its AI offerings and enhance its leadership position in the collaboration space. This acquisition allowed Cisco Systems to develop a cognitive collaboration team. Though Cisco, a leader in the networking and collaboration space, hasn’t publicly mentioned IBM’s Watson, its newly developed team is very likely to pose a threat to the platform.

Microsoft (MSFT) is the second-largest player in the collaborative space. Its strong position in terms of collaboration has helped it to maintain its leadership position in the SaaS (software-as-a-service) space for three straight quarters. Previously, the enterprise SaaS space was dominated by Salesforce (CRM).

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