International Business Machines Corp.(IBM) has launched two new cloud based services for its clients that enable data protection and help in the faster recovery of archived data and essential applications.
IBM SmartCloud Virtualized Server Recovery and IBM SmartCloud Archive, under IBM SmartCloud Resilience services, add flexibility to the customers in data and application protection in a cost effective way.
This is essentially a cloud based disaster management service, wherein clients within the IBM SmartCloud environment are able to protect and store critical business data efficiently in times of disaster such as hurricanes, earthquakes or IT failures.
Earlier, companies created numerous images of servers and applications running at multiple sites, which was complex and added to IT management costs. Now, through IBM SmartCloud’s virtual and physical server recovery service, the applications and associated data are securely stored in the cloud infrastructure and are also quickly recovered, without disrupting operations.
Globally, almost all businesses are beginning to strategize their operating model in a manner that unforeseen events do not disrupt the steady work flow. Uninterrupted operation ensures no revenue loss for organizations.
IBM has the experience and expertise in managing IT environments of innumerable clients globally and will continue to innovate and revolutionize the client servicing space. IBM’s opportunity pipeline with respect to new technologies, especially those related to cloud computing continues to grow as clients increasingly go for IT-enabled expansion.
Cloud computing has a number of advantages and the cost advantage of sharing resources has resulted in its growing adoption by businesses across a number of industries. However, proper management and usage of the technology is a prerequisite.
The cloud computing market is expected to grow at a CAGR of 40.0% from 2010 to 2015, crossing $7.0 billion in revenues by 2015. Cloud computing leads to improved services and elevated security requirements for companies that use it and IBM’s product portfolio is well positioned to benefit.
IBM remains a heavyweight in the cloud computing market and its strong cash balance enables IBM to acquire companies with high intellectual property (IP), which will drive further growth in upcoming quarters. We have a long-term Neutral recommendation on IBM and are optimistic about its strong fundamentals and robust growth prospects going forward.
We also believe that IBM’s growing initiatives in the smarter planet, business analytics and optimization will drive long-term growth. Besides, the ability to generate strong free cash flow, expand margins and improve the already robust balance sheet make the stock attractive over the long term
However, the competitive landscape includes technology giants, such as Oracle Corp. (ORCL), Hewlett-Packard Co. (HPQ), Microsoft Corp. (MSFT) and EMC Corp. (EMC), all of which have joined IBM in the cloud computing market.
We currently have a Zacks #3 Rank for IBM, which translates into a short-term Hold rating.
EMC CORP -MASS (EMC): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
MICROSOFT CORP (MSFT): Free Stock Analysis Report
ORACLE CORP (ORCL): Free Stock Analysis Report
Zacks Investment Research
