The IBM Strategy

02 We are remaking enterprise
IT for the era of
cloud.


WHAT WE SEE SHIFTING:

The emergence of cloud is transforming IT
and business processes into digital services.

At the same time industries and professions are being remade by data, the information
technology infrastructure of the world is being transformed by the emergence of cloud
computing—that is, the delivery of IT and business processes as digital services.

85% of new software is now being built for the cloud; 1/4 of the world's applications will be available in the cloud by 2016.
85%

of new software is now being built for the cloud

 
 
 
1/4

of the world’s applications will be available in the cloud by 2016

Cloud chart
 
Cloud people chart 72% of developers already report that cloud-based services or APIs are part of the applications they’re designing
72%

of developers already report that cloud-based services or APIs are part of the applications they’re designing


OUR POINT OF VIEW:

Cloud demands—and enables—new business models.

Leaders will:

Integrate public and private clouds with back-end systems to create hybrid environments. This will create demand for cloud middleware services.

Seek—or be required—to manage cloud environments with the same rigor as an on-premise data center.

Use cloud to reinvent core business processes and to innovate.


THEREFORE:

We have built the world’s most complete cloud portfolio, delivering our clients’ technology and business processes as digital services.

$7 billion

invested to date to build cloud capabilities

1,500+

cloud patents

5.5 million

client transactions processed daily through IBM’s public cloud

80%

of Fortune 500 companies use IBM’s cloud capabilities

15

acquired companies, including SoftLayer, for cloud infrastructure

2,000

SoftLayer APIs to provide a view of the client’s environment

100+

industry-leading Software as a Service (SaaS) offerings

5,000+

private and hybrid cloud engagements in more than 100 countries included IBM Systems in 2013


In 2014, we will expand our cloud footprint and capabilities.

IBM is investing $1.2 billion to expand a massive network of local cloud hubs for businesses worldwide, to meet growing demands for capacity, choice, compliance and data residency.

15

planned 2014 market expansions

40

total cloud data centers
across five continents

cloud-map-graphic

Connecting applications via the cloud

“Cloud middleware services” are emerging to connect securely customer applications and core enterprise systems such as finance, inventory or human resources via the cloud. In 2014, we are opening up our entire enterprise software portfolio via BlueMix, a platform to equip the tens of millions of corporate and web developers with an open environment and tools to build enterprise-class cloud applications at consumer scale.

Markets planned to open in 2014:

  • Australia (2)
  • Brazil
  • Canada (2)
  • China (2)
  • France
  • Germany
  • India
  • Japan
  • Mexico
  • United Kingdom
  • United States (2)

In 2013 we grew our cloud revenue 69 percent, and we exited the year with a run rate for cloud “as a service” double that of 2012.

Cloud Revenue: 2013 - $4.4 billion; 2012 - $2.6 billion Cloud Revenue: 2013 - $4.4 billion; 2012 - $2.6 billion
Cloud 'as a Service' Revenue Run Rate: 2013 - $2 billion; 2012 - $1 billion Cloud 'as a Service' Revenue Run Rate: 2013 - $2 billion; 2012 - $1 billion