Loughridge comments on roadmap initiatives from IBM 3Q11 call: When we introduced our 2015 roadmap, we identified key initiatives that will deliver most of our revenue growth over the next few years. We’ve had terrific performance in these growth plays. We continue to have strong growth in our Smarter Planet offerings , through the first 3 quarters we’re up 50% over last year. This quarter, growth was again driven by solutions in our retail and telecom industries. And our Smarter Commerce initiative is gaining momentum. In business analytics , we are helping our customers manage and optimize tremendous amounts of data. Through the first three quarters of the year, our business analytics revenue is up 19 percent, reflecting a strong portfolio of integrated software and consulting capabilities. Our cloud initiatives help clients improve the economics of IT. Year to date, we have already doubled last year’s cloud revenue, as we extend our offerings. In fact, just last week we announced new and enhanced cloud capabilities for service delivery, the data center, and business model innovation. So we are leveraging our growth plays while expanding margin. For both the quarter and year to date we’ve expanded our net operating margin by 20 basis points. At the same time, we’re driving investment of R&D, capital, and acquisition spend along these same growth themes, from optimized systems to business analytics to Smarter Commerce and Smarter Cities. Opportunity numbers from “Laura” in MI: Here are the opportunity numbers for both Software and Total IBM -- note that for Cloud, there are 3 numbers, as in the past, we've always used "total IT" for external comms (was $191B, for reference). To be consistent with past messages, for Cloud, I would advise using the Total IT ($219B)-- but to be consistent with other numbers, you may want to use the Total Served IT ($158B) -- Total Served IT Growth Market Opportunity = $226B -- Software Growth Market Opportunity = $30B -- Total Served IT Analytics Opportunity (BAO) = $160B -- Software Analytics Opportunity (BAO) = $65B -- Total Served IT Smarter Planet Opportunity = $165B -- Software Smarter Planet Opportunity = $30B *-- Total Cloud IT Opportunity = $219B *-- Total Served Cloud Opportunity = $158B *-- Software Cloud Opportunity = $10B Source: IBM Market Insights, GMV2H11, October 2011 *Source: IBM Market Insights, Cloud Opportunity Phase 2 Refresh 08/25/11
Nearly half (48%) of CIOs surveyed evaluate cloud options first, over traditional IT approaches, before making any new IT investments We asked the respondents regarding their plans around the organization's level of cloud technology adoption today and the expected level in 3 years. 72% of the respondents were either piloting, or had adopted or substantially implemented cloud in their organization, and this number is expected to increase to more than 90% in 3 years with a rate of growth touching 215% for organizations which intend to substantially implement cloud. Further, forecasts around cloud predict the cloud market to reach up to $241bn by 2020. Today, at least two thirds of companies of all sizes are actively either experimenting with or implementing cloud Survey results reveal that organizations are experimenting with cloud regardless of the size. Although, larger organizations are more likely to adopt or are piloting in cloud when compared to smaller organizations.
City of Sunderland Selects IBM to Deliver UK's First Smarter City on a Cloud Sunderland's City Cloud designed from the outset for both council and local businesses SUNDERLAND, U.K. - 14 November 2011: Sunderland City Council and IBM (NYSE:IBM) today announced that they will provide a city-wide Cloud computing platform that will not only meet the Council's own needs, but that will stimulate economic growth for the benefit of the whole city by reducing the technological investment barriers experienced by start-ups and local companies wishing to expand operations.. Sunderland's Cloud is expected to reduce its own operational costs by £1.4m annually over the next five years, in the delivery of IT services through a reduction in hardware, software, maintenance and improved IT management. The Cloud will also provide a low cost, accessible and secure platform for use across Sunderland. It will allow residents to access services and information in a quicker and easier way, making the City Council more responsive. Businesses will benefit through the ability to increase capacity and capabilities without investing in new infrastructure, training new personnel or licensing new software. Other companies, agencies and public sector partners are also expected to use the Cloud for improved collaboration. IBM will provide the planning, design, provision and implementation of the Cloud for server and end-user computing. The Cloud has been designed to incorporate existing hardware and software in order to be as cost-effective as possible, whilst at the same time providing the council's requirements in terms of: facilitating an agile workforce, improving the experience of 4,000 end-users, simplifying systems management and reducing carbon emissions. Councillor Paul Watson, Leader of Sunderland City Council, said: “'The Cloud is a cornerstone of our Economic Masterplan. The new Cloud infrastructure will lay the foundations of an even Smarter Sunderland, one that ensures the city is internationally recognised as a model for its operations and a prime location for inward investment.” In the UK, Sunderland has more technology start-ups than anywhere other than London. The new Cloud deployment will also address Sunderland's goal to become a national hub for the low-carbon economy, which will require a computing model which supports an eco-system of companies and agencies to collaborate. Paul Woolston, Chair of the North Eastern Local Enterprise Partnership, said: "Sunderland is very much at the forefront of developing and growing the software industry in the North East and this is the latest example of partnership working which will create building blocks for economic growth. It raises our game to an international level and will assist the whole of the North East to attract investment and create opportunities for businesses across all sectors." Dave Smith, Chief Executive of Sunderland City Council, said: “IBM's vision for Smarter Cities resonated very well with our own plans for Sunderland. With the experience of over 2,000 Smarter City engagements worldwide I'm not surprised that the solution it proposed was the most innovative and gave us the flexibility we need to take the regional economy forward onto a global stage.” The City Council sees the cloud implementation as the foundation for deeper transformation, by making available sophisticated but affordable capabilities such as channel shift to online self-service, fraud detection and process optimisation. It will also be used to enable innovative delivery models to be adopted. For example it could allow a staff 'bring your own computer' policy which has been seen to increase flexibility and reduce costs. Lynn Ferguson, IBM Industry Executive for Local Public Services commented: “The creative thinking behind the use of cloud technology to not only support the provision of council services but to also help facilitate economic growth in the city, demonstrates Sunderland City Council's vision and determination to drive innovation across the city.” As part of the contract IBM will provide network, storage and server hardware. IBM will also provide server virtualisation technology and integrated management and monitoring facilities. To support operations IBM will provide business continuity, backup and disaster recovery services. End-users will be provided with a standardised desktop model; they together with council ICT staff will receive training to underpin the long-term success of the project. Sunderland's Cloud will be hosted in Sunderland's own data centres. The contract was signed in September 2011.
Client Name: Wuxi iPark Subtitle: A dynamic infrastructure frees up resources for new business The Need China is emerging as one of the world's major markets of software development and outsourcing services. However, the industry is facing several challenges, such as a lack of advanced software development platforms as well as a large technical skill shortage. To survive and be more competent in a rapidly evolving environment, software companies or ISVs recognize the need to have agile software development processes to shorten the lifecycle from product development to market. The Solution IBM Research-China teamed with a regional center of innovation to enable ISVs located in the center to remotely access a vast computing environment for project incubation, development and testing, paying for services based on usage. This utility-based service is delivered via the Web and integrates technologies and concepts from cloud computing, software-as-a-service (SaaS) and software engineering as a service (SEaaS) and includes operational and hosting services. What Makes it Smarter This new business model allows ISVs to conserve energy and resources and reduce their IT investment, freeing up capital and resources for other business activities. Thanks to the open standards-based technology architecture and an innovative development methodology, environment allows software development to be done by team members located in different cities in China in a shared IT environment. As a result, ISVs can increase their response to market demands and requirements. The new cloud computing offering also helps ISVs reach new markets by providing the ability to sell their software solutions hosted as Web-based services to customers around the world. By providing advanced IT resources and a value-added service, this center operates under a new business model. Unlike other software parks or science parks in China, this one can now provide greater services beyond the typical office space, general management support, and basic facilities, such as water and electricity. Usage level : Win/Ongoing project/Completed project: External/Unblinded Ongoing Industry : Computer Services
“ We no longer worry about what hardware is in the school as much. We also no longer worry about the applications or processes that the schools are using because they are the same for everyone.” — Maritta Horne, chief information officer and director of technology, Pike County Schools Pike County Schools was looking at replacing 1,400 aging workstations across its district. Instead, it deployed a virtual desktop solution on an IBM cloud, standardizing the applications and processes for all the schools and enabling it to use existing hardware to access cloud services. The district achieved cost savings of 60 percent by avoiding a full equipment refresh and increased levels of security and reliability in the IT infrastructure.