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000-424 IBM zSeries Sales V1

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000-424 exam Dumps Source : IBM zSeries Sales V1

Test Code : 000-424
Test title : IBM zSeries Sales V1
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: 140 real Questions

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IBM IBM zSeries Sales V1

Cloudy climate ahead for IBM and crimson Hat? | killexams.com real Questions and Pass4sure dumps

the world is buzzing concerning the software business’s largest acquisition ever. This “video game changing” IBM acquisition of pink Hat for $34 billion eclipses Microsoft’s $26.2 billion of LinkedIn, which set the previous record. And it’s the third biggest tech acquisition in legacy at the back of Dell buying EMC for $sixty four billion in 2015 and Avago’s buyout of Broadcom for $37 billion the equal 12 months.

Wall highway certainly receives nervous when it sees these lofty cost tags. IBM’s stock turned into down 4.2 p.c following the announcement, and there are likely greater considerations over a broader IBM selloff round how tons IBM is procuring pink Hat.

This units the stage for huge expectations on IBM to leverage this asset as a essential turning aspect in its background. considering the fact that IBM’s Watson AI poster newborn has did not create sustainable growth, might this subsist their finest probability to right the ship once and for all? Or is that this mega merger a sophisticated affray of cultures and items with a purpose to compose it difficult to recognise the total knowledge?

large Blue’s been in gargantuan main issue

When the chips are down, it’s time to head total in. large Blue definitely greatly surprised the expertise world when it introduced it might accomplish its greatest deal ever and purchase purple Hat for an essential 11x premium. The reality is that crimson Hat became no longer always seeking to subsist acquired, so overpaying become the handiest colorable alternative. And if IBM didn’t pay, Google, Amazon, VMWare and even Alibaba would have.

determined times claim desperate measures. IBM has been struggling to disclose boom in novel markets for reasonably some time. earlier than 2018, it had 22 straight quarters of earnings decline. And it has misplaced over $28 billion in revenue over the past six years. Its profits at the conclusion if 2017 become $79.14 billion, the bottom in two decades and the worse annual quantity in view that 1997, when IBM revenues were $78.fifty one billion, except for inflation.

In early 2018, IBM changed into in a position to bear three consecutive quarters of salary boom, but that turned into notably as a result of the introduction of a brand novel line of IBM Z mainframe computer systems.

IBM has been a business in decline for decades. It’s challenging to preserve a enterprise with shrinking sales.

Too historic to grow?

IBM is more than 100 years historical and definitely suffers from comparisons to younger and nimbler corporations corresponding to Amazon, Google, fb, and Apple which believe posted checklist expand in recent times. Amazon’s concurrent profits believe surpassed $2 billion, as an instance.

in case you contrast IBM to Microsoft, an additional historical world utility company, it’s startling to examine the disagreement in how Microsoft has been in a position to reposition itself as boom enterprise in accordance with the cloud.

In 1990, when Microsoft unlock home windows 3.0, IBM had revenues of $69 billion (only $10 billion modest of what it has today), while Microsoft had around $800 million. Microsoft surpassed IBM in earnings in 2015 and crossed the $100 billion annual earnings trace in 2018.

over the ultimate several years, as IBM’s revenue shrank, Microsoft invested in its “commercial cloud” business that encompasses Azure, office 365, and Dynamics 365, bringing in over $23 billion in novel revenues. Microsoft has lately been firing on total cylinders whereas IBM skilled expand stalls.

gradual to salvage to the cloud

IBM’s success in the hardware company, principally it’s Z-series mainframes, compelled it to give protection to its turf and distracted it from seeing the longer term influence of cloud. AWS total started offering public cloud capabilities again in 2006. As late as 2011, IBM changed into barely mentioning the commemorate “cloud” in its annual reports or profits calls. The company at ultimate realized in 2013 that cloud computing changed into the longer term and made a hail-Mary buy of SoftLayer to bridge the hole, paying $2 billion and then investing an extra $1 billion to integrate the platform.

It’s challenging to establish massive market participate when you’re late to the birthday party. Softlayer’s worldwide market participate continues to subsist a far fifth in the back of AWS, Microsoft, Google, and even fresher newcomer Alibaba, which handed IBM’s cloud revenues in June of 2018.

IBM made a few other cloud-linked acquisitions, including Gravitant (a cloud brokerage and administration application), Bluebox (a private cloud as a provider platform in keeping with OpenStack), Sanovi (a hybrid cloud recovery and migration application), Lighthouse and CrossIdeas (both cloud protection structures), and CSL overseas (a cloud virtualization platform).

despite these acquisitions in the cloud market, IBM has failed to basically monetize those items and benefit market participate in the cloud.

The business has failed to capitalize on improvements before: Watson AI turned into on the accurate of its online game when it debuted on Jeopardy in 2011 to beat human contestants however straight away fell in the back of Amazon, Google, and Microsoft.

Will purple Hat subsist the savior?

pink Hat is the area’s largest company of open-source enterprise software solutions. pink Hat’s bread and butter Linux company continues to convey expand in particular because it powers many modern AI and analytics workloads. Its mannequin has advanced from simply on-premise to a suit subscription business used on public cloud structures akin to Amazon net services (AWS), Microsoft Azure, and Google Cloud Platform (GCP).

crimson Hat has additionally accelerated into open middleware solutions comparable to OpenStack, a cloud infrastructure platform, and OpenShift, a platform for managing software containers. OpenShift has long been a well-kept stealthy as Cloud aboriginal Computing foundation (CNCF) has grabbed lots of the headlines with its Kubernetes container orchestration platform. IBM has an opening to leverage its marketing and international attain to cheer mainframe and legacy consumers to adopt OpenShift. These platforms had been totally leveraged in inner most and hybrid cloud deployments, notably in industries fancy telecommunications.

There is not any doubt that purple Hat offers IBM a a lot greater credible cloud story. but the question truly is, is it too late?

The acquisition is definitely suited information for firms trying to shift classic container-based mostly purposes and digital machines to the cloud. although, Amazon has already captured a gargantuan participate of that market.

whereas the acquisition of red Hat offers IBM a powerful position in the hybrid-cloud market, which should subsist natural for enterprises that don't appear to subsist taking the time to decommission or re-architect legacy purposes, the fast-growing to subsist public cloud market should subsist the battleground of the future.

Will the mixing salvage messy?

IBM has had a spotty listing when it comes to integrating and capitalizing on colossal acquisitions.

whereas nearly total of IBM’s M&A has been within the enviornment of utility, profits in the segment has been disappointing. perhaps what's regarding is that adjusting for acquisitions, IBM’s application enterprise continues to voice no — in universal because of the indisputable fact that these giant acquisitions believe become a participate of the IBM fabric and enterprise as average.

Can IBM integrate some thing as huge as pink Hat with out interfering with its core value proposition? Many worry that huge Blue will try to “blue wash” their platform of alternative.

And there’s the question of whether these two diverse company cultures can approach collectively – IBM, a gradual growth company not making tons evolution in the cloud area, and purple Hat, an innovative, open supply company it really is pile foundational components for working within the cloud.

We’ve seen culture clashes derail many different extravagant profile mergers comparable to HP/Compaq, HP/Autonomy, Microsoft/Nokia, AOL/Time Warner, dash/Nextel and Alcatel/Lucent. IBM will deserve to comprehend the open source neighborhood and approach.

The joint company will pan vital platform selections on the cloud front. IBM has a public cloud that competes with AWS and Microsoft. but developers exercise red Hat’s Linux on many public clouds. while that multi-cloud approach will aid IBM herald profits throughout the universal public clouds, it will create battle with its personal Softlayer cloud offering. IBM has struggled to manage this type of channel and product affray efficaciously during the past.

and then there is the pass forward for IBM’s own AIX operating device vs. Linux — now not to point out the SCO-IBM Unix lawsuit nonetheless lingering in the courts.

also to subsist alert are the lesser regularly occurring crimson Hat storage products fancy purple Hat Ceph (an expostulate file storage) and crimson Hat Gluster (a NAS product). As red Hat integrates into IBM’s hybrid cloud neighborhood, these storage items will subsist separated from IBM, which might create confusion and battle.

So while IBM actually faces lots of possibility with the acquisition, there isn't any assure this large wager will pay off. IBM crucial a bold move. but within the short time period, they are not likely to peer any sudden movement of IBM’s district in the public cloud space. total eyes might subsist on its capacity to catapult into the hybrid cloud market. For that, the business will necessity to subsist sure it doesn’t salvage in its own means.

Frank Palermo is the government vice chairman at Virtusa’s international Digital business, the district he is answerable for technology practices in UX, mobility, social, cloud, analytics, massive information, and IoT.


IBM: Why traders should not buy The souse | killexams.com real Questions and Pass4sure dumps

No influence found, are attempting novel key phrase!I feel it is a grave mistake to ignore the atmosphere when evaluating IBM’s efficiency. There are three over-arching factors one really necessity to accept as lawful with in evaluating just how well or how poorly t...

TeamQuest pronounces aid for IBM zSeries utilizing SuSE Linux | killexams.com real Questions and Pass4sure dumps

TeamQuest pronounces lead for IBM zSeries applying SuSE Linux

powerful novel array of efficiency and capability management elements now obtainable for the IBM zSeries

Clear Lake, Iowa, June 28, 2004 – TeamQuest service provider today introduced that it is featuring aid for the IBM zSeries with a comprehensive SuSE Linux solution. As greater businesses depend on mainframe servers to vitality their transformations into on-demand firms, the IBM zServer gives sophisticated workload administration know-how. The TeamQuest technology retort further enhances the optimizing and performance performance of the IBM zSeries for valued clientele who reliance upon the SuSE Linux Platform.

“TeamQuest is dedicated to featuring options customers require to wait competitive,” said Mike Ellis, vice president of advertising and product management at TeamQuest employer. “Our finished solution for IBM zSeries purchasers who utilize SuSE Linux helps them successfully scale operations whereas providing the charge-mark downs associated with integrating Linux into the commercial enterprise.”

New features launched ultimate month in TeamQuest efficiency 9.1 consist of further agents and multi-device modeling with the skill to consolidate workloads throughout servers. automatic linear vogue and brief-vogue evaluation capabilities aid identify over-utilized servers and realize glide in variable at an early stage and forecast future habits according to statistical techniques. a brand novel interface makes it viable for users to maneuver and administer total methods from a lone console, enabling clients to outline guidelines to span a yoke of methods.

“The power of the IBM zSeries is that it makes it viable for the scalability it is required in today’s changing company climates,” delivered Ellis. “we're excited to deliver the elements and performance their consumers depend upon to this novel and quickly transforming into platform.”

TeamQuest performance 9.1 application for the IBM zSeries is available with the aid of contacting income@teamquest.com, or by means of calling 641-357-2700.

About TeamQuest

TeamQuest enterprise is a world leader in performance and capacity planning software. For more assistance, consult with http://www.teamquest.com or title 1-641-357-2700. In Europe, core East and Africa, title +46-31 eighty 95 00, and in Asia Pacific title +sixty one 3 9641 2288.

TeamQuest and the TeamQuest logo are registered trademarks in the US, ecu and in other places. total other logos and service marks are the property of their respective owners. petite necessity of a third-party trace is to subsist construed to insinuate such mark's proprietor endorses TeamQuest items or functions.


000-424 IBM zSeries Sales V1

Study lead Prepared by Killexams.com IBM Dumps Experts


Killexams.com 000-424 Dumps and real Questions

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000-424 exam Dumps Source : IBM zSeries Sales V1

Test Code : 000-424
Test title : IBM zSeries Sales V1
Vendor title : IBM
: 140 real Questions

No supply is greater effective than this 000-424 supply.
Passing the 000-424 was long due as I was extremely busy with my office assignments. But, when I establish the question & retort by the killexams.com, it really inspired me to entangle on the test. Its been really supportive and helped lucid total my doubts on 000-424 topic. I felt very contented to pass the exam with a huge 97% marks. noteworthy achievement indeed. And total credit goes to you killexams.com for this wonderful support.


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The precise answers had been no longer tough to consider. My information of emulating the killexams.Com became absolutely appealing, as I made total right replies within the exam 000-424. Much preferred to the killexams.Com for the help. I advantageously took the exam readiness inside 12 days. The presentation mode of this aide turned into simple without any lengthened solutions or knotty clarifications. Some of the topic which might subsist so difficult and tough as properly are instruct so superbly.


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Being an below commonplace student, I were given terrified of the 000-424 examination as subjects regarded very hard to me. But passing the test was a necessity as I needed to alternate the undertaking badly. Searched for an easy manual and were given one with the dumps. It helped me retort total more than one type questions in two hundred minutes and bypass thoroughly. What an notable question & answers, intellect dumps! Satisfied to attain gives from well-known organizations with handsome package. I advocate simplest killexams.Com


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Passing the 000-424 become long due as I turned into extremely busy with my office assignments. But, after I discovered the question & retort with the aid of the killexams.com, it actually stimulated me to entangle on the test. Its been without a doubt supportive and helped lucid total my doubts on 000-424 topic. I felt very contented to skip the exam with a large 97% marks. noteworthy fulfillment certainly. And total credit is going to you killexams.Com for this incredible support.


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IBM zSeries Sales V1

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IBM to spend $100 Million on Mainframes | killexams.com real questions and Pass4sure dumps

IBM will spend $100 million over the next five years to compose the mainframe easier to use.

The program will focus on such areas as greater automation, modernizing the user interface and easing the pass users manage the software on the machines.

It kicked off Oct. 4 with the release of the novel z/OS V1.8 on System z operating system, which offers a host of novel features and tools designed to compose running the systems easier.

"We want the IT community to subsist alert that they are now working to reduce the complexity and making it easier to manage these systems," said Bob Hoey, worldwide vice president of sales for IBM's System z business.

The initiative is the latest from IBM to modernize its mainframe technology and retain the business pitiful forward. The Armonk, N.Y., company sees the mainframe—once thought to subsist a fading business line being overrun by smaller and less costly RISC and x86 systems—a growth technology, most recently highlighted in April by the release of the low-end System z business Class mainframe. IBM announced the release at an event in China, signaling its credence that emerging countries are a key growth district for the mainframe.

Data headquarters consolidation of multiple Unix and Windows systems is a key target area, Hoey said.

"We believe the z9 is a growth platform and that customers who don't believe a mainframe today … should deem bringing in a mainframe to consolidate these disparate systems," he said.

IBM continues to believe success with the mainframe. In the second quarter, the company saw revenues for the business and the MIPS (million instructions per second) shipped both jump about 7 percent over the very age ultimate year. And while Hoey couldn't talk about specific numbers for the third quarter—IBM is scheduled to release its quarterly earnings Oct. 17—he said sales figures were ahead of projections.

The novel z/OS V1.8 is the latest dawdle to retain the mainframe business pitiful forward. The operating system includes the Health Checker for z/OS, which monitors systems running the OS and recommends configuration changes that can improve the performance and security, and the Omegamon z/OS Management Console, which offers a more modern GUI.

In addition, enhancements to the Hardware Configuration Manager comprehend novel configuration wizards, the capacity to import and export I/O definition files, and the integrated capacity to quicken up the detection and resolution of performance bottlenecks. A novel manual with V1.8 helps lead users though problem-solving steps.

IBM's drive to compose it easier to exercise the mainframe comes at the very time that it is undertaking a program—dubbed zNextGen—to cheer university students to train on the platform, a dawdle designed to flow the drain of IT professionals who travail on the mainframes.

Another address IBM is taking to retain the platform pitiful forward is the rollout of various specialty processors, such as the zIIP (z9 Integrated Information Processor), which aid business more easily centralize back-end workloads on the mainframe.

Other such specialty engines comprehend the IFL (Integrated Facility for Linux) chip, dedicated to Linux workloads, and the zAAP (zSeries Application Assist Processor), which incorporates Java applications into the mainframe.

Hoey said IBM's goal—as stated in its Mainframe Charter issued three years ago—is to deliver a 20 percent price/performance improvement to the platform every year, something he said the company has done for the past three years.

Check out eWEEK.com's for the latest news, views and analysis on servers, switches and networking protocols for the enterprise and wee businesses.


An Operating System Reloaded: IBM Preps Major z/VSE Overhaul | killexams.com real questions and Pass4sure dumps

An Operating System Reloaded: IBM Preps Major z/VSE Overhaul

Next version of z/VSE looks fancy an operating system reborn

  • By Stephen Swoyer
  • 10/30/2007
  • IBM Corp.’s z/VSE operating environment is soundless going strong. Although z/VSE doesn’t boast much in the pass of market participate or revenue growth—not, at least, when compared to other, sexier System z workloads, such as Linux or zSeries Integrated Information Processor—Big Blue continues to invest in and improve the z/VSE experience.

    If ongoing technology investment and novel operating system revisions are positive indications of a platform’s viability, z/VSE looks as viable as ever.

    Consider IBM’s upcoming z/VSE 4.2 release, for example. While gargantuan Blue has been gradual to insert champion for Linux and other next-gen workloads in previous iterations of z/VSE—at least relative to what it’s done with both z/VM and z/OS—the latest version of that venerable operating environment looks fancy VSE reborn, with better champion for z/Linux, a novel Encryption Facility, expanded storage support, and improved performance and scalability.

    The rub, of course, is that customers will believe to wait until late next year to salvage their hands on it: z/VSE 4.2 isn’t slated to ship until Q4 of 2008.

    By the time it does ship, it could aid fuel pent-up demand.

    The impetus, IBM officials say, is the ever-increasing uptake of gargantuan Iron Linux: as customers deploy more zLinux workloads on System z mainframes, they’re increasingly running them in conjunction with z/VSE applications.

    For one thing, says Jerry Johnston, System z technical sales specialist and Boeblingen Lab senior advisor with IBM, the novel release should compose it easier for customers to expose their VSE applications to zLinux.

    "There are a number of integration possibilities," he says. "Each customer is different. For example, four European customers presented solutions at the recent [Guide participate Europe] conference in Boeblingen. A yoke of them believe z/VSE applications that access data stored in DB2 UDB on Linux on System z. Another is working on WebSphere applications under Linux on System z that can access data stored in files on z/VSE."

    There’s likewise HiperSockets, z/VM, and Integrated Facility for Linux (IFL) integration, too. "Customers can implement integrated solutions that exploit System z 'HiperSockets' for fast, secure communications between z/VSE and Linux on System z," he continues. "They can entangle advantage of low-cost IBM System z Integrated Facility for Linux (IFL) specialty engines. Last, but not least, customers can entangle advantage of IBM's world-class virtualization technology, z/VM, to salvage the most from their Linux on System z and z/VSE systems."

    Removing Limits

    z/VSE 4.2 likewise eliminates a long-standing VSE bottleneck: a circumscribe of 255 concurrent processes. In most cases, Johnston says, users believe been able to travail around this; once z/VSE 4.2 becomes generally available, they won’t believe to. "The z/VSE operating system itself uses 32 of those [tasks]. Subsystems fancy CICS, VTAM, TCP/IP, DB2, [and so on] each exercise a number of tasks. They reduce the number of tasks available to the user for application programs," he explains. "z/VSE V4.2 users will believe more than 255 tasks to travail with. That means, for example, they can create more CICS and batch partitions in z/VSE V4.2. More partitions expand the capacity of the system to accomplish useful work, [which leads to] better scalability."

    The novel revision will likewise explode a traditional storage bottleneck, Johnston continues. True, z/VSE 4.1—which shipped earlier this year—eliminated the long-standing 2 GB central storage restriction (it boasted champion for up to 8 GB of real storage), but z/VSE 4.2 will retreat that several orders of magnitude better.

    "Now, z/VSE V4.2 is designed to champion up to 32 GB … of real processor storage," he says, which could entail additional scalability benefits. "Larger real reminiscence may lead to a reduction in paging. Paging occurs when a chore needs central storage but no free storage is available. At that point, the operating system has to find a page to remove, transfer it to external page storage, and start the novel activity. From a system point of view, paging is just wasted activity and to subsist avoided. z/VSE V4.2's champion for up to 32 GB of real storage means that, in many cases, less paging will occur."

    Improved Security

    Finally, Johnston concludes, z/VSE 4.2 will ship with a novel Encryption Facility to better secure business data. This is a more involved proposition than it might seem, he points out. For starters, the function of the novel Encryption Facility for z/VSE V1.1 is roughly equivalent to that of the z/OS variant (also at version 1.1). This means both implementations are likewise interoperable. "Tapes created by one can subsist read by the other," Johnston says.

    At total events, z/VSE’s novel Encryption Facility will aid protect against the adventitious (and frequently quite literal) loss of data.

    "You may believe seen intelligence stories about tapes that believe been 'lost.' There believe been articles about tapes that believe been misplaced, stolen, dropped off the back of a delivery truck, taken from a truck while the driver was having coffee, etc.," he explains. "One solution to avoid the compromise of business/personal data is to encrypt the tape. … If a tape falls into the wrong hands, the information is safe because it cannot subsist read without knowing the key."

    VSE’s novel Encryption Facility will subsist packaged and licensed as an optional, priced feature of IBM’s VSE Central Functions version 8, according to Johnston. This product includes the basic VSE operating system, along with a passel of other features. As with z/OS, the Encryption Facility for z/VSE likewise exploits built-in System z features to accelerate encryption and reduce processing costs. "[Encryption Facility] for z/VSE exploits novel System z hardware instructions designed to accelerate the encryption process. These instructions are participate of a no-charge, optional hardware feature—available on z990/890, z9 EC, and z9 BC models—known as CP Assist for Cryptographic Function," Johnston indicates. "Similarly, when compressing data, [Encryption Facility] for z/VSE uses System z hardware compression instructions."

    As an added bonus, it’ll likewise subsist eligible for the Midrange Workload License Charges pricing scheme that gargantuan Blue introduced earlier this year.

    About the Author

    Stephen Swoyer is a Nashville, TN-based freelance journalist who writes about technology.


    Cloudy weather ahead for IBM and Red Hat? | killexams.com real questions and Pass4sure dumps

    The world is buzzing about the software industry’s largest acquisition ever. This “game changing” IBM acquisition of Red Hat for $34 billion eclipses Microsoft’s $26.2 billion of LinkedIn, which set the previous record. And it’s the third largest tech acquisition in history behind Dell buying EMC for $64 billion in 2015 and Avago’s buyout of Broadcom for $37 billion the very year.

    Wall Street certainly gets nervous when it sees these lofty price tags. IBM’s stock was down 4.2 percent following the announcement, and there are probably more concerns over a broader IBM selloff around how much IBM is paying for Red Hat.

    This sets the stage for massive expectations on IBM to leverage this asset as a faultfinding turning point in its history. Given that IBM’s Watson AI poster child has failed to create sustainable growth, could this subsist their best opening to right the ship once and for all? Or is this mega merger a complicated clash of cultures and products that will compose it hard to realize the replete potential?

    Big Blue’s been in gargantuan trouble

    When the chips are down, it’s time to retreat total in. gargantuan Blue certainly shocked the technology world when it announced it would accomplish its biggest deal ever and purchase Red Hat for a huge 11x premium. The reality is that Red Hat was not necessarily looking to subsist acquired, so overpaying was the only viable option. And if IBM didn’t pay, Google, Amazon, VMWare or even Alibaba would have.

    Desperate times summon for desperate measures. IBM has been struggling to demonstrate growth in novel markets for quite some time. Before 2018, it had 22 straight quarters of revenue decline. And it has lost over $28 billion in revenue over the past six years. Its revenue at the quit if 2017 was $79.14 billion, the lowest in 20 years and the worse annual number since 1997, when IBM revenues were $78.51 billion, excluding inflation.

    In early 2018, IBM was able to bear three consecutive quarters of revenue growth, but that was mainly due to the introduction of a novel line of IBM Z mainframe computers.

    IBM has been a business in decline for many years. It’s hard to sustain a business with shrinking sales.

    Too old-fashioned to grow?

    IBM is more than 100 years old-fashioned and certainly suffers from comparisons to younger and nimbler companies such as Amazon, Google, Facebook, and Apple that believe posted record growth in recent times. Amazon’s recent profits believe surpassed $2 billion, for example.

    If you contrast IBM to Microsoft, another old-fashioned world software company, it’s startling to espy the disagreement in how Microsoft has been able to reposition itself as growth company based on the cloud.

    In 1990, when Microsoft release Windows 3.0, IBM had revenues of $69 billion (only $10 billion modest of what it has today), while Microsoft had around $800 million. Microsoft surpassed IBM in revenue in 2015 and crossed the $100 billion annual revenue trace in 2018.

    Over the past several years, as IBM’s revenue shrank, Microsoft invested in its “commercial cloud” business that encompasses Azure, Office 365, and Dynamics 365, bringing in over $23 billion in novel revenues. Microsoft has recently been firing on total cylinders while IBM experienced growth stalls.

    Slow to salvage to the cloud

    IBM’s success in the hardware business, specifically it’s Z-Series mainframes, forced it to protect its turf and distracted it from seeing the future repercussion of cloud. AWS began offering public cloud services back in 2006. As late as 2011, IBM was barely mentioning the word “cloud” in its annual reports or earnings calls. The company finally realized in 2013 that cloud computing was the future and made a hail-Mary purchase of SoftLayer to bridge the gap, paying $2 billion and then investing an additional $1 billion to integrate the platform.

    It’s hard to establish significant market participate when you’re late to the party. Softlayer’s worldwide market participate continues to subsist a far fifth behind AWS, Microsoft, Google, and even fresher newcomer Alibaba, which exceeded IBM’s cloud revenues in June of 2018.

    IBM made several other cloud-related acquisitions, including Gravitant (a cloud brokerage and management software), Bluebox (a private cloud as a service platform based on OpenStack), Sanovi (a hybrid cloud recovery and migration software), Lighthouse and CrossIdeas (both cloud security platforms), and CSL International (a cloud virtualization platform).

    Despite these acquisitions in the cloud market, IBM has failed to truly monetize those products and gain market participate in the cloud.

    The company has failed to capitalize on innovations before: Watson AI was at the top of its game when it debuted on Jeopardy in 2011 to beat human contestants but quickly fell behind Amazon, Google, and Microsoft.

    Will Red Hat subsist the savior?

    Red Hat is the world’s largest provider of open-source enterprise software solutions. Red Hat’s bread and butter Linux business continues to deliver growth especially as it powers many modern AI and analytics workloads. Its model has evolved from purely on-premise to a healthy subscription business used on public cloud platforms such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP).

    Red Hat has likewise expanded into open middleware solutions such as OpenStack, a cloud infrastructure platform, and OpenShift, a platform for managing application containers. OpenShift has long been a well-kept stealthy as Cloud aboriginal Computing Foundation (CNCF) has grabbed most of the headlines with its Kubernetes container orchestration platform. IBM has an opening to leverage its marketing and global compass to cheer mainframe and legacy clients to adopt OpenShift. These platforms believe been highly leveraged in private and hybrid cloud deployments, especially in industries fancy telecommunications.

    There is no doubt that Red Hat gives IBM a much more credible cloud story. But the question really is, is it too late?

    The acquisition is certainly suited intelligence for enterprises looking to shift classic container-based applications and virtual machines to the cloud. However, Amazon has already captured a significant participate of that market.

    While the acquisition of Red Hat gives IBM a tenacious position in the hybrid-cloud market, which will subsist favorite for enterprises that are not taking the time to decommission or re-architect legacy applications, the fast-growing public cloud market will subsist the battleground of the future.

    Will the integration salvage messy?

    IBM has had a spotty record when it comes to integrating and capitalizing on large acquisitions.

    While the majority of IBM’s M&A has been in the district of software, revenue in the segment has been disappointing. Perhaps what is concerning is that adjusting for acquisitions, IBM’s software business continues to decline — mostly due to the fact that these large acquisitions believe become participate of the IBM fabric and business as usual.

    Can IBM integrate something as gargantuan as Red Hat without interfering with its core value proposition? Many dread that gargantuan Blue will attempt to “blue wash” their platform of choice.

    And there’s the question of whether these two different corporate cultures can approach together – IBM, a gradual growth company not making much progress in the cloud space, and Red Hat, an innovative, open source company that is pile foundational components for operating in the cloud.

    We’ve seen culture clashes derail many other tall profile mergers such as HP/Compaq, HP/Autonomy, Microsoft/Nokia, AOL/Time Warner, Sprint/Nextel and Alcatel/Lucent. IBM will necessity to embrace the open source community and strategy.

    The joint company will pan faultfinding platform decisions on the cloud front. IBM has a public cloud that competes with AWS and Microsoft. But developers exercise Red Hat’s Linux on many public clouds. While that multi-cloud approach will aid IBM bring in revenue across the public clouds, it will create affray with its own Softlayer cloud offering. IBM has struggled to manage this type of channel and product affray successfully in the past.

    And then there is the future of IBM’s own AIX operating system vs. Linux — not to mention the SCO-IBM Unix lawsuit soundless lingering in the courts.

    Also to note are the lesser known Red Hat storage products fancy Red Hat Ceph (an expostulate file storage) and Red Hat Gluster (a NAS product). As Red Hat integrates into IBM’s hybrid cloud group, these storage products will subsist separated from IBM, which could create confusion and conflict.

    So while IBM certainly faces a lot of opening with the acquisition, there is no guarantee this gargantuan bet will pay off. IBM needed a bold move. But in the short term, they are unlikely to espy any sudden movement of IBM’s position in the public cloud space. total eyes will subsist on its capacity to catapult into the hybrid cloud market. For that, the company will necessity to compose sure it doesn’t salvage in its own way.

    Frank Palermo is the executive vice president at Virtusa’s Global Digital Business, where he is responsible for technology practices in UX, mobility, social, cloud, analytics, gargantuan data, and IoT.



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