Wednesday, October 3, 2012

International Business Machines Corp.(NYSE:IBM) Fights Back Against Amazon.com (AMZN) and Salesforce (CRM)

For the first time ever, Amazon.com, Inc.(NASDAQ:AMZN) and salesforce.com, inc.(NYSE:CRM) have surpassed the popularity of tech giant International Business Machines Corp.(NYSE:IBM) and have also started penetrating prestigious accounts that have been under IBM for years.

But IBM is not cowering. It has come up with its own tactics by targeting mid-sized enterprises comprising less than 1000 employees, which is the territory of Salesforce and Amazon. They will be offering Big Blue clouds that have not been heard of and were previously deemed un-affordable due to IBM’s traditional carriage trade pricing. Prices will be slashed and IBM hopes that its techno-smarts and goodwill will make up the sum.

IBM is expecting small but steady sales that will turn out to be major money makers in the long run. Marc Benioff, CEO of Salesforce has stated that IBM is no longer the cutting-edge brand that it once was due to losing their sheen. They don’t rule the technology domain anymore.

The company is partnering with Infor, Highland Solutions and 1,400 MSPs to penetrate his flanks with IBM PureSystem technology and revamped OpenStack-beholden SmartCloud software in order to build private, public, and hybrid cloud. An analytics feature will also be present.

They will be using their own data centers and IBM’s money (in the form of zero percent loans). Shanghai, Tokyo, New York and Germany houses several centers of excellence where MSPs receive training. IBM has great plans for the program and has promised to donate a substantial sum from their marketing budget to make it better.

According to Gartner, the sales figures of cloud computing services will shoot to $58 billion this year, a jump of almost $8 billion as compared to last year. IBM hopes in generating lucrative revenue via analytics, smart cities, upcoming markets, and cloud computing.

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