IBM Nets $7B with Cloud; Signs $500M Deal with Anthem
IBM reported their 4th quarter fiscal earnings earlier this week. The biggest take away found in IBM’s 4th quarter fiscal reports is that cloud brought $7B in revenue for Big Blue. IBM has positioned much of its core business around its IaaS, PaaS and SaaS offerings. IBM’s earnings missed the mark in other facets of its business such as its mainframe and power systems group. The sagging revenues related to IBM’s 11 quarter slump are largely attributed to IBM’s endeavors that are unrelated to its cloud offerings. In 2014, IBM sold off its low-end server hardware business unit to Lenovo for $2.1B.
IBM CFO Martin Schroeter recently told Reuters that IBM isn’t “Interested in revenue for revenue’s sake.” Schroeter’s statement seems to reaffirm IBM’s intent on becoming the predominant global leader in enterprise cloud. Although IBM’s 4th quarter fiscal earnings may not have impressed financial gurus, IBM has pressed forward with its cloud endeavors while shedding many of its less profitable ventures.
IBM to Architect Anthem’s Hybrid Cloud
IBM swiftly followed up its earnings reports with an announcement detailing its newly signed half billion dollar deal with Anthem. The contract largely revolves around Anthem’s desire to implement IBM’s hybrid cloud solutions into their existing infrastructure. The health insurance giant turned to IBM as it looked to streamline and empower its existing infrastructure while gaining access to IBM’s proprietary cloud offerings.
Anthem health insurance serves over 69 million people through out its extended coverage networks. Tom Miller, CIO of Anthem, commented on the contract saying, “We are excited about our renewed partnership with IBM, which includes numerous enhancements to contracted service levels and support processes. The health care industry is going through dynamic change that requires us to be more agile and responsive, utilizing advanced technology to drive better quality, value and outcomes for consumers.”
