[LINK] Clouds.. IBM, Microsoft, Amazon and Google

[stephen at melbpc.org.au]

As the world turns to clouds, our Minister for Slow is patching old copper. 

IBM’s Big Plans for Cloud Computing

By QUENTIN HARDY. DECEMBER 4, 2013,
<http://bits.blogs.nytimes.com/2013/12/04/ibms-big-plans-for-cloud-
computing/?nl=todaysheadlines&emc=edit_th_20131205>


Ambition is an impressive thing, particularly when a desire for world 
domination is combined with existential survival.

Four heavyweight tech companies are translating ambition into investments 
in their cloud computing services: IBM, Microsoft, Amazon and Google are 
all expected to spend more than $1 billion annually on their global 
networks in the coming years.

Even more important, however, is that all the companies are developing 
knowledge through their cloud services of how to run truly huge Internet-
based computing systems — systems that may soon be nearly impossible for 
other companies to match. 

If any other company is thinking of entering the business, like China’s 
Tencent, for example, they’ll need to move fast or come up with something 
revolutionary.

IBM’s response? You ain’t seen nothing yet.

In 2014, the company will make a series of announcements that will shiver 
all challengers, according to Lance Crosby, chief executive of SoftLayer, a 
cloud computing company that IBM purchased earlier this year for $2 
billion.

More than 100 products, like e-commerce and marketing tools, will be put 
inside the cloud as a comprehensive series of offerings for business, Mr. 
Crosby said. 

So will another 40 infrastructure services, like big data analysis and 
mobile applications development.

“It will take Amazon 10 years to build all of this,” he said. “People will 
be creating businesses with this that we can only dream about.”

Maybe. IBM already claims to lead in cloud computing revenue, with $1 
billion in revenue in the past quarter alone. 

That’s impressive, though that revenue includes revenue from software that 
used to be attributed to a different category at the company. And some of 
the revenue is being generated by companies IBM recently acquired, 
including SoftLayer.

On many other fronts, such as the number of machines it operates, the 
number of major companies running big parts of their business on IBM’s 
public cloud, and the new technology it appears to have built for cloud 
computing, IBM is arguably the laggard among the top four providers. As the 
SoftLayer purchase indicates, it has had to buy big for what the others 
have mostly grown internally.

What IBM does have, however, is a lot of money and resources it plans to 
throw at cloud computing. And given its experience in the early-1990s, when 
it faced a near-death experience after missing a major technology shift, 
the company may also have a belly for a swift change.

The big push will begin in February, Mr. Crosby said, with a formal 
inauguration of its new cloud offerings by Virginia M. Rometty, IBM’s chief 
executive.

IBM has also deployed 400 employees to OpenStack, an open source software 
project with more than 200 corporate members that goes after much of the 
proprietary cloud systems of Amazon, Microsoft and Google. 

This seems much like IBM’s involvement a decade ago in Linux, which helped 
that open source operating system win corporate hearts and minds.

In addition to the consolidation of online software and services, Mr. 
Crosby said, IBM is “absolutely” looking to sell its big mainframe 
computing capabilities as a cloud-based service. 

It also plans to draw on the insights it has gained from building and 
licensing technology used by Microsoft in the Xbox gaming console, and 
Google in its own network operations, he said, and will make more 
acquisitions for the cloud business.

“We make the processors in Google’s server racks,” he said, “We understand 
where gaming is going. Before I got here, I thought this was a big old tech 
company, too; I didn’t see all of the assets.”

It’s true that IBM is big. And, it is also a tech company. And undeniably 
102 years old, which makes it both a survivor and a creature of successful 
processes. 

Mr. Crosby has two bosses between him and Ms. Rometty, and numerous 
executive vice presidents above him that may agree on the eventual future, 
but have their own views about the speed with which they’ll move there.

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