Recent weeks have seen major announcements from IBM including launching a Watson business unit to “productize” cognitive computing, selling the System x (x86) Server business to Lenovo, and significant investments in expanding its focus on Cloud with SoftLayer as a key foundation. On February 18 and 19, 2014, IBM hosted analyst updates to further describe their heightened focus on Cloud. Briefings featured both the PaaS and IaaS layers of the new IBM Ecostack with BlueMix, Cast Iron and Cloudant occupying prominent positions in the PaaS layer, as well as other solutions running alongside BlueMix on top of the SoftLayer IaaS platform. IBM is now actively seeking candidates for its open beta program that will run through June 2014.

Why is it Happening?

Saugatuck sees IBM’s recent announcements as clear indication that IBM is investing heavily in Cloud, and in Softlayer as a platform, acknowledging the ever-decreasing profit in the traditional on-premises x86 server business versus the rapidly-increasing profit potential in Cloud-based offerings. Saugatuck assesses the burgeoning opportunities in Cloud in two general categories:

  • Development and Subsequent “Hosting” of New Applications in a Cloud.
  • Renovation and Migration of Applications to a Cloud.


Read the Market Impact here.

This blog was originally published at Saugatuck's Lens360 blog on February 27, 2014. Published with permission.

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