IBM, AT&T Partnering To Offer Cloud Services For Fortune 1000 Companies

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(Photo: Stock.xchng)
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BUSINESS

  • Service provides data access via IBM network and AT&T infrastructure; target audience is Fortune 1000 companies
  • IBM hopes to make $7 billion in cloud revenue by 2015
  • IBM also seeking to boost its presence in analytics market

International Business Machines Corp., the world’s largest computer services provider, and AT&T Inc., the largest phone carrier in the US, have entered into an agreement to deliver a secure, network-enabled cloud service.

Cloud services involve storing software and information in offsite data centers.

Users of the new service will have access to AT&T’s network and IBM’s SmartCloud Enterprise, its data storage services and facilities. Both companies’ sales forces will work with customers, and revenue will be split.

The service is intended for Fortune 1000 companies and will only be available to those using IBM's SmartCloud Enterprise+ service. It will be offered on a pay-as-you-go basis. AT&T customers will have the option of adding IBM’s services to their current network.

Andy Geisse, Head of AT&T’s Business Client Unit, says AT&T benefits because “with our customers, we see cloud computing as a key part of their network infrastructure and of their computer environment going forward.”

The service will launch early next year, and IBM hopes to make $7 billion in cloud revenue by 2015.

According to research firm IDC, cloud services are expected to reach $14 billion this year, up 24% from 2011. The partnership will allow IBM and AT&T a greater percentage of the market share.

Financial terms of the deal have not been disclosed.

Analytics Market

Meanwhile, IBM also is seeking to boost its presence in the analytics market by adding new products. IBM’s PureSystems product line, which offers computing, storage and networking technology, will soon offer two new analysis products and a rapid storage product.

The products will help IBM go after Oracle Corp, which is the world’s largest supplier of database software. IBM’s goal is to reach $16 billion in revenue from analytics by 2015.

Key Statistics - Cloud Services Industry

  • Improved computation capacity, cost reduction and the scalability of IT resources is forecast to drive the cloud computing service market to grow phenomenally in the near future. By 2014, the market is predicted to more than double from 2009 levels, with companies in the US and Europe likely to dominate the market. (source: TechSci Research)
  • Over 2011–2015, the public cloud services market is expected to grow at a CAGR of nearly 30% globally. The need to reduce organizational IT service costs is a key factor to market growth. (source: TechNavio)
  • From 2010 to 2017, the market for cloud computing in the healthcare field is expected to grow with a CAGR of close to 21%. (source: Markets & Markets)

By Melina Druga for
Melina Druga is an American writer and editor. She is the author of Enterprising Women: Practical Advice for First Time Entrepreneurs.

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