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The market for cognitive insights delivered via cloud to specific industries is estimated to grow to roughly $2 trillion by 2025. Given this huge opportunity, I’m not surprised that some IBM competitors are realigning their sales forces to target industry verticals.
While there are several reasons why companies choose IBM over our competitors, we believe the most important reason is that IBM is built to support the enterprise. IBM has built its cloud with Watson to be a highly differentiated platform focused on the needs of businesses and industry verticals. Most of all, it is optimized from the chipset to serve the user experience. This allows clients to integrate their data from their existing systems with other kids of data in the cloud and uses Watson to make sense of it.
Moreover, the nearly 60 IBM cloud data centers in 19 countries – including four new centers announced this week – are incredibly important. The breadth and location of our data centers is critical, as global enterprises navigating the transition to the public cloud are increasingly subjected to many different regulatory requirements related to security, privacy, governance and other key issues.
Enterprise clients require – and the IBM platform uniquely provides – controlled access to their data sets. This includes data locality – transparency of where their data is, who is using it, what it’s being used for, and data isolation to ensure their data is not intermingled with others’ data.
IBM also has the industry expertise to meet strict regulations across various industries while creating custom solutions for its customers. For example:
- The IBM Cloud is designed for industries with stringent regulatory requirements including HIPAA, GxP, and QMS.
- For industries such as automotive, aircraft, and consumer electronics, the IBM cloud platform offers a half-a-petabyte a day to/from connected devices.
- Today, IBM Cloud supports some of world’s most notable brands, including American Airlines, AT&T, Bitly, BMW, Bombardier, Maersk, Chubb, Clarient Global, Etihad, Kaiser Permanente, Lloyds Banking Group, Halliburton, Pratt & Whitney, Shop Direct, US Army and Wanda Group.
While other providers are just now reorganizing around industries, IBM is already well positioned in key sectors, delivering industry-specific cloud solutions to clients:
Education: IBM and Sesame Workshop are working with Georgia’s Gwinnett County Public Schools, one of the top urban school districts in the US, on an initial pilot of the industry’s first cognitive vocabulary learning app, built on the IBM and Sesame intelligent play and learning platform. The new platform, powered by IBM Cloud, enables an ecosystem of software developers, researchers, educational toy companies and educators to tap IBM Watson cognitive capabilities and Sesame Workshop’s early childhood expertise to build engaging experiences to help advance children’s education and learning.
Retail: IBM announced that it is a pilot partner of BMW CarData. BMW CarData will allow up to 8.5 million BMW customers globally to make use of third party services in a secure and transparent way. BMW is the first OEM to release an open data platform with the introduction of BMW CarData. As a pilot partner, IBM has integrated the IBM Cloud with the BMW CarData platform. Vehicle data will be enhanced by IBM Watson Internet of Things (IoT) using cognitive and data analytics services to enable third parties, such as automotive repair shops or insurance companies, to develop entirely new customer experiences.
Health: Memorial Sloan Kettering clinicians and analysts are partnering with IBM to train Watson Oncology to interpret cancer patients’ clinical information and identify individualized, evidence-based treatment options. Through this partnership, IBM and Sloan Kettering are working to decrease the amount of time it takes for the latest research and evidence to influence clinical practice across the broader oncology community care.
Manufacturing: Bombardier announced it is extending its long-term partnership with IBM through a new six-year deal valued at approximately $700 million, which includes IBM Services and IBM Cloud management of Bombardier’s worldwide IT infrastructure and operations.
Financial services: IBM signed a 10-year cloud services agreement with Lloyds Banking Group in the UK with a contract value of $1.69 billion. IBM will provide dedicated cloud offerings hosted securely in both Lloyds and IBM data centers in the UK and will manage the application migration services to their new cloud.
Transportation: American Airlines announced this quarter it will move to the IBM Cloud and use it as the foundation for its digital transformation. American will migrate critical applications including aa.com, its customer facing mobility app and global network of kiosks.
These are just a few of our client wins over the past quarter. As we continue to strengthen our position as the enterprise cloud leader, we remain committed to continuing to innovate and provide cutting-edge solutions based on emerging technologies across multiple professions.
Because every day IBM remains committed to creating new, customer-centric solutions that are enterprise strong, data first, and most importantly, cognitive at the core.