IT services business
According to a report from Reuters, hackers attacked IBM (IBM) and Hewlett Packard Enterprise’s (HPE) networks and stole confidential information from clients’ computers. The Chinese (FXI) campaign, popularly known as “Cloudhopper,” targeted MSPs (managed service providers) like IBM and Hewlett Packard Enterprises to obtain secret information. The report said, “Cloudhopper targeted MSPs to access client networks and steal corporate secrets from companies around the globe, according to a U.S. federal indictment of two Chinese nationals unsealed on Thursday.”
The attacks could impact the future business of IBM and Hewlett Packard Enterprise’s Services segment. IBM’s Global Business Services and Technology Services & Cloud Platforms segments accounted for ~66% of the company’s overall revenues in the last quarter. IBM depends on the IT services that it provides to its clients. Hewlett Packard Enterprise’s Services segment accounts for ~35% of its overall revenues.