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Inside IBM’s New Venture with Vodafone

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Addressing pain points in multicloud strategy

IBM (IBM) and Vodafone (VOD) have joined forces to launch a joint venture to help speed up the uptake of cloud computing and business applications powered by next-generation technologies such as 5G and artificial intelligence.

Among other services, the IBM-Vodafone venture is expected to provide companies and organizations with flexible technology to integrate multiple clouds. This multicloud strategy, or the practice of organizations running data and applications in different cloud environments, is gaining currency. According to IBM, more than 70% of organizations today use as many as 15 cloud environments. 

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A multicloud strategy also presents a set of challenges, such as data security and ensuring the free flow of data and applications across different clouds. These are some of the pain points that IBM and Vodafone are setting out to address for organizations migrating to the cloud through their new venture.

Vodafone signs IBM for managed services

In addition to collaborating on developing solutions to help organizations make a smooth migration to the cloud, Vodafone has also signed IBM to provide it with managed services over a period of eight years, for which it will pay ~$550 million.

IBM’s revenue fell more than 2.0%

IBM reported revenue of $18.8 billion in the third quarter of 2018, representing a fall of 2.1% YoY (year-over-year). Amazon (AMZN), Alphabet (GOOGL), Microsoft (MSFT), and SAP SE (SAP) grew their revenues 29%, 21%, 19%, and 7.7% YoY, respectively, in the third quarter. IBM reported its fourth-quarter results on January 22.

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