IBM Wins Deal to Supply Cloud Computing to California Agencies
July 24, 2014
Grazed from Bloomberg. Author: Alex Barinka.
International Business Machines Corp. (IBM) will supply cloud services to the government of California, letting more than 400 state and local agencies save money by pooling their computing resources. IBM will store data and software on remote servers in a service called CalCloud, available to all state and local government bodies, the company said today in a statement. The arrangement lets agencies pay only for the computing workload they need.
IBM is counting on cloud computing for growth after nine straight quarters of declining revenue, dragged down by weak demand for hardware and falling sales in markets like China. Cloud technology has been a conundrum for the Armonk, New York-based company because it can reduce demand for hardware, since companies rent computing power rather than assembling their own data centers…
The company competes for cloud-computing clients with Oracle Corp. (ORCL), Microsoft Corp. and Amazon.com Inc., to which IBM lost a $600 million contract with the U.S. Central Intelligence Agency last year…
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