Watson AI is driving cloud growth
IBM (IBM) has continued to gain traction in the cloud space, buoyed by the growing popularity of its Watson AI platform. Strong demand for AI prompted the tech giant to integrate Watson AI into its cloud.
The usage of AI in the cloud saves time and money through better data analysis. Watson AI has been hugely successful in the data-heavy health industry. Watson AI Oncology is now available in more than 150 hospitals and health organizations.
The company’s overall cloud business is showing strong growth, driven by ongoing digital transformation trends. The chart above shows IBM’s cloud growth in the last five quarters.
IBM also offers private, hybrid, and public cloud features to customers, providing them with the flexibility to easily move from the public to private cloud while connecting back to their on-premises systems. To compete with other cloud operators such as Amazon (AMZN), Google (GOOGL), and Microsoft (MSFT), the company has stepped up its acquisitions.
In the last three years, IBM has bought more than 34 companies, including Vivant, Merge Healthcare, and Truven Health Analytics. These acquisitions have enhanced IBM’s Watson AI features and software-as-a-service platform. The company’s prioritization of security features and large storage facilities have also attracted customers.