uploads///IBMs Cloud Revenues Have Been Accelerating

Why IBM Is Pairing Up with BMW Again


Jun. 16 2017, Updated 3:52 p.m. ET

IBM and BMW team up again

IBM (IBM) is teaming up with German automaker BMW to provide cloud-based data management for the latter’s recently launched connected car initiative. Connected cars are those equipped with Internet.

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IBM is seeking to expand its cloud computing business

IBM is promoting its cloud-computing platform to automakers to increase its share in the booming connected cars market. IBM seeks to increase its market share in the cloud services market. It currently lies in the third spot well behind Amazon (AMZN) and Microsoft (MSFT). The company recently expanded its cloud computing business by opening four new data centers in the US. It has also added data centers in South Korea and Europe. Plus, the tech giant also tripled its data center capacity in the UK in the past year.

IBM had also paired up with BMW earlier this year to develop cars capable of not only driving themselves but also adapting to passenger preferences to ensure comfort and safety on the road. It was based on IBM’s cognitive computer technology, Watson.

Connected car data is a swiftly growing market for car makers. Service companies want to tap into their huge captive client base. Companies like BMW are gearing up to increase their revenues from such sources.

The project with BMW is expected to start later this year and is likely to create a global data hub that gathers data from multiple automakers.


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