How IBM Differentiates Its Cloud Products



Cloud business strategy

To remain competitive in the cloud business and boost its market share, IBM (IBM) has continued to strengthen its cloud platform through AI and blockchain technology. The company targets enterprise customers by offering advanced and hybrid cloud structures providing them with the flexibility to easily move workloads from the public to private cloud while connecting back to their on-premises systems.

IBM has differentiated its cloud platform from rival platforms based on four key parameters:

  • it is integrated with its Watson AI features
  • it optimizes data in the cloud
  • it can store huge amounts of data 
  • it is built to support new technologies without much adjustment

Cloud performance

The company’s overall cloud business has grown strongly, driven by digital transformation across industries and the company’s ability to support customers to operate in hybrid cloud environments. In the last five quarters, IBM’s cloud revenue has grown at a compound annual rate of 4.7%. In the first fiscal quarter, its cloud revenue grew 20% YoY (year-over-year) to $4.2 billion, and its annual run rate rose 20% YoY to $10.7 billion at constant currency. 

Peer comparison

In the last four quarters, IBM has garnered cloud revenue of $17.7 billion, while Microsoft (MSFT) and Oracle (ORCL) have seen cloud revenue of $22.5 billion and $5.9 billion, respectively. The graph above compares their cloud revenue in the last four quarters.

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