A Closer Look Inside IBM's Cloud Challenge

Grazed from NYTimes. Author: Quentin Hardy.

IBM, after a sluggish start, is moving with real urgency in building up its cloud business, as I noted in a recent article. “IBM has made big moves and done some really good things,” said Daryl Plummer, an analyst at Gartner. “But the question now is, can it win business and make money in the cloud business?”

IBM is hardly alone in facing the economic challenge of cloud computing, in which companies buy computing delivered, remotely, as a service over the Internet. The more that computing shifts to the cloud, the less that corporate customers will buy conventional software and hardware for their own data centers...

All the big incumbents in the enterprise market — Oracle, SAP, Microsoft, Hewlett-Packard and EMC — face the same threat. But as the largest supplier of technology to corporate data centers, IBM has the most to lose — unless it can turn the cloud trend to its advantage...

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