IBM sets sight on Europe’s automotive sector
At the moment, Amazon (AMZN) and Microsoft (MSFT) are in the lead in the European cloud market, according to Synergy Research. But IBM (IBM) is out to loosen their grip. In Europe, IBM has identified an opportunity for its cloud computing business in the region’s automotive sector. Europe is home to some of the world’s top auto manufacturers and auto parts suppliers. In Europe, therefore, IBM is creating artificial intelligence and cloud solutions aimed at automotive companies. Last month, IBM revealed that Germany’s Volkswagen and Netherland’s Vinturas are some of Europe’s automotive companies that use its AI and cloud services.
IBM counting on Red Hat purchase to strengthen cloud business
The race for cloud computing money in Europe also pits IBM against Alibaba (BABA), which has been expanding its cloud capacity in the region to better serve customers there. In Europe, Alibaba is focused on selling cloud services to Chinese companies that operate on the continent.
IBM’s cloud revenue fell 2.0% YoY to $5.0 billion in the first quarter as Alibaba (BABA), Microsoft, and Amazon recorded cloud revenue growth of 76%, 73%, and 41% YoY, respectively, in that period. IBM is in the process of purchasing Red Hat (RHT) to strengthen its cloud business, especially in the hybrid cloud segment.