About the deal
On July 3, IBM (IBM) announced that it made a deal with French-based cloud management company Cegid. According to the deal, IBM will deliver hybrid cloud IT infrastructure to the French firm. Moreover, Cegid will also gain access to IBM’s cloud technologies and other facilities including services available in IBM’s data warehouse in Paris.
Driving Cegid’s business
The rising demand for the cloud platform buoyed by the migration of on-premise data to the cloud prompted Cegid to use IBM’s expertise to develop a customized private cloud platform in 2012. The deployment helped Cegid’s SaaS (software as a service) business to expand more than 30% in the last six years. The French firm projects that its SaaS business will increase fourfold by 2021 driven by the growing popularity of IoT (Internet of Things) services. Thus, given the growing cloud demand, Cegid signed the deal with IBM to enhance its cloud infrastructure.
Strengthening European presence
IBM has continued to boost its cloud business in the European market through deals with six more European firms:
- the Netherlands’ Koopman Logistics
- Italian multimedia publishing company Gruppo 24 Ore
- Spanish digital and mobile health solution provider Teckel Medical
- French bank Crédit Mutuel
- the UK’s RS Components
- multinational lighting manufacturer Osram AG
These deals may allow these enterprises to leverage IBM’s AI (artificial intelligence), blockchain, and analytics services and could drive IBM’s business in the EMEA (Europe, Middle East, Africa) region. The deals may also help the company to close the gap in the cloud business with Microsoft (MSFT) and Amazon (AMZN).