IBM’s is debuting a new storage software offering called Spectrum Storage. The announcement comes as many industry analysts have taken note of IBM’s tactical shift in refocusing its sales from lower margin hardware to higher margin software solutions.
Spectrum Storage gives administrators an in-depth, one page look at massive amounts of data and analytics concerning your storage infrastructure both on premises and in the cloud. In a statement released Tuesday, IBM mentions that it plans to invest $200M a year for the next 5 years on enterprise storage solutions. The $1B pledge will help IBM introduce many of its innovative storage tools into the market. It will also help Big Blue reach its goal of refocusing on higher margin software sales.
Tom Rosamilia, SVP at IBM, told Bloomberg, “We are investing in things that can be growth potential for us.” Rosamilia went on to say that was “In a good place.” IBM will keep selling hardware solutions as it compete with vendors such as EMC for private infrastructure market share.
Speaking of investing, Warren Buffett is reported to have reaffirmed his confidence in IBM. The self made billionaire recently increased Berkshire Hathaway’s stake in IBM up over 9%. Bloomberg is calling the move one of Buffett’s biggest bets ever. Buffett’s enterprise disclosed on Tuesday through a financial statement that it recently purchased 6.5 million shares of IBM stock.
Buffett’s Berkshire Hathaway is currently listed as the single largest single shareholder of IBM stock. Buffett’s empire currently holds 7.8% of the total stock issued for IBM with Bloomberg listing Hathaway as owning 76.97 million in shares. With Buffett effectively doubling down on Big Blue, it seems to confirm speculation that IBM’s general strategy going forward will be to focus on higher profit margin software offerings as it simultaneously tries to ditch its lower margin hardware endeavors.