Advertisement

Cloud News

IBM CEO: AI, Hybrid Cloud The ‘Most Transformational Enterprise Technologies’

Wade Tyler Millward

‘Hybrid cloud is about offering clients a platform that can drive value across these different environments. Our platform, based on Red Hat, allows our clients to consume software driven by open-source innovation,’ says IBM CEO Arvind Krishna.

IBM Consulting Exceeding Expectations

[Last October, we] said that we expect software to grow in mid-single digits, so think 4 [percent] to 6 percent. And we had said consulting to grow in high single digits.

And we had said that infrastructure will be about flat. This year will be a good year because of the product cycle. And then probably somewhere in late ’23 or ’24, we‘ll get the flip side of that up from this year.

But then you get into consulting. Our long-term model was not in the teens, which it has done this year. It was in the high single digits.

So the book to build combined with the shorter-term signing gives us confidence that we will be able to maintain that model.

Look … the nature of our consulting business is very different from some others. The bulk of our consulting business is in digital transformation, helping our clients move to cloud. Not just our cloud, but AWS and Azure among it.

It’s on properties that I think are fairly essential to our clients—SAP, CRM, Adobe are great examples.

As you begin to wrap around, help them [customers] move to cloud—both public and hybrid—help them do digital transformation, help them take advantage of these massive productivity SaaS properties that I just named, even in a inflationary environment, even when the economy is not doing well, these tend to be the projects that stay the course.

But maybe the signings come in smaller chunks. And as long as we deliver well, then people tend to sign up more and more going forward. And that’s sort of a bit of color of what we’ve seen play out already this year, and we expect that to maybe increase next year.

 
Wade Tyler Millward

Wade Tyler Millward is an associate editor covering cloud computing and the channel partner programs of Microsoft, IBM, Red Hat, Oracle, Salesforce, Citrix and other cloud vendors. He can be reached at wmillward@thechannelcompany.com.

Advertisement
Advertisement
Sponsored Post
Advertisement
Advertisement