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Why IBM Cloud Is Gaining Global Popularity with Start-Up Firms

Aaron Hemsworth - Author
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Aug. 18 2020, Updated 4:39 a.m. ET

Different types of solutions for new firms

On July 19, International Business Machines (IBM) declared that many upcoming start-up firms have struck deals with the company to leverage its IoT (Internet of Things), blockchain, and AI technology, which are easily available on its cloud platform.

Canada-based VitRuvian Sport Systems is using IBM’s AI tools to build virtual training scenarios for coaches. GreenQ, an Israeli company, is leveraging IBM’s IoT technology to make cities clean by providing waste management solutions. Serbian company Blinking is using Hyperledger Fabric blockchain on IBM Cloud. Spanish company SmartRural uses the IBM Cloud to analyze and store important data and drone images, thus saving costs and time.

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Factors attracting many firms 

IBM is gaining strong market share in the enterprise cloud space. Its dominance over blockchain and Watson AI remains the key to attract more start-up firms compared to Microsoft (MSFT) and Amazon (AMZN). IBM’s customers can easily access AI and blockchain technologies on the cloud, thus offering more flexibility and saving costs and time. The company’s cloud platform can easily adjust to new technologies.

From the graph above, you can see the growth in IBM cloud in the last five quarters, driven by a huge demand from start-up firms. During the period, it grew at a CAGR (compound annual growth rate) of 4.8%. In fiscal Q2 2018, cloud revenue increased 20.5% year-over-year to $4.7 billion.

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