Posts Tagged ‘IBM’

Gartner Names IBM a Leader in the Magic Quadrant for Data Center Outsourcing and Infrastructure Utility Services

September 2nd, 2014

IBM today announced that Gartner, Inc. has once again recognized IBM as a leader, placing the highest for ability to execute, in the newly published “Magic Quadrant for Data Center Outsourcing and Infrastructure Utility Services” reports for North America(1) and Europe(2).outsourcing28

IBM’s cloud leadership, as well as its focused strategy on mobile, social and security – which are further fueled by extensive R&D and technology investments in analytics and automation – are key differentiators that enable the company to seamlessly integrate and orchestrate infrastructure services across hybrid environments spanning both cloud and traditional IT models.

Gartner evaluates the top providers of data center outsourcing (DCO) and infrastructure utility services (IUS), which are often enabled by remote infrastructure management (RIM) services and increasingly include cloud computing components. Gartner includes in its evaluation cloud infrastructure as a service (IaaS) and platform as a service (PaaS) offerings that are part of IUS and data center managed services.

“As clients look to grow their business with innovative technologies such as cloud, analytics and mobile computing, they are looking for a trusted partner to help them integrate the new IT solutions with their existing investments,” said Philip Guido, General Manager, IBM Global Technology Services, North America. “We believe this recognition from Gartner reaffirms IBM’s market leadership in assisting clients to evolve their IT infrastructure and meet their business demands.”

IBM delivers a full spectrum of infrastructure services that enable organizations to capitalize on the transformative power of cloud and hybrid IT environments. The company draws upon its vast technical resources and global delivery network – spanning 330 delivery services data centers; 40 cloud data centers, including new SoftLayer data centers in Toronto and London; 11 security operations centers; and 145 business resilience centers – to provide clients with fast, reliable, security-rich data center services.

According to Gartner, “growth in data center services has shifted from traditional to new models, such as cloud IaaS and PaaS, reflecting a shift in competitive delivery models. Gartner predicts it will deliver a global compound annual growth rate of 12.4% for the period 2012 through 2018.” The research firm also “predicts the key business indicators of data center service providers will improve significantly during the next five years and make them a more competitive outsourcing choice.”

(1) Gartner, Magic Quadrant for Data Center Outsourcing and Infrastructure Utility Services, North America, William Maurer, David Edward Ackerman, Bryan Britz, July 31, 2014

(2) Gartner, Magic Quadrant for Data Center Outsourcing and Infrastructure Utility Services, Europe, Claudio Da Rold, Gianluca Tramacere, Frank Ridder, DD Mishra, Gregor Petri, July 16, 2014

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Source:http://myhostnews.com/2014/09/gartner-names-ibm-a-leader-in-the-magic-quadrant-for-data-center-outsourcing-and-infrastructure-utility-services/

Monitise signs partnership deal with IBM

August 28th, 2014

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British mobile money company Monitise has signed a partnership agreement with IBM in the latest sign that technology groups are pushing further into the lucrative financial services sector.

News of the agreement sent Monitise shares up about 14 per cent to a closing price of 48.4p. Monitise shares had fallen precipitously in the preceding months, to half the 80p highs they attained earlier in the year.

The tie-up will give lossmaking Monitise access to IBM’s client base of big corporate customers using cloud-based technologies, including global banks, said Monitise chief executive Alastair Lukies. A fifth of the company’s staff – about 200 workers in its professional services division – will move across to Big Blue.

“It doesn’t matter if I’m a small bank in Venezuela, a medium bank in Indonesia or a large bank in America,” said Mr Lukies, a former rugby player turned entrepreneur. “We will build the products and solutions, and IBM will go out and implement them.”

Monitise has been trying to turn the smartphone into a one-stop banking and shopping device, after it downgraded revenue estimates and began shifting its business model away from upfront licence fees and towards subscriptions.

The London-listed company – often considered one of the rising stars in UK tech – builds banking and payment apps, as well as software that lets different financial institutions talk to one another in order to facilitate mobile transactions. It likens itself to a next-generation Link, the organisation that co-ordinates ATMs in the UK. Monitise’s customers include Lloyds, RBS and Visa.

“The risk if you start dancing with these big bears is that they’ll go and do it themselves,” Mr Lukies said, referring to the partnership. “But we were never going to get to the scale of thousands of banks and hundreds of millions of customers alone. We’ve been here with Visa and MasterCard . . . and if IBM believe they could have done it themselves they would have built it.”

The transfer of 200 staff is “not about outsourcing the division because we don’t want it any more”, Mr Lukies added.

He said the deal would generate cost savings, but declined to put a commercial value on the contract.

Monitise is aiming to be profitable by 2016 and to achieve a user base of 200m people two years later, up from its current 30m. It recently recruited Visa executive Elizabeth Buse to share responsibilities as chief executive with Mr Lukies.

It will report full-year results on September 15, which it is guiding for about 30 per cent revenue growth. Revenues last year were £73m, with an operating loss of £46m.

Peter Roe, analyst at research group TechMarketView, said in a research note that the tie-up “will accelerate Monitise’s progress in the mounting land-grab across mobile banking and m-commerce.” He pointed out that it will be important for the partnership to ensure it has common objectives, as many have failed because of divergent aims.

Source:http://www.ft.com/intl/cms/s/0/cd3fd90e-2de3-11e4-b330-00144feabdc0.html#axzz3BYxTW8GB

IBM inks private cloud deal with Westpac New Zealand

August 22nd, 2014

Enterprise IT vendor IBM announced its private cloud deal with Westpac New Zealand.Outsourcing47

Westpac, one of the top outsourcing clients for IBM, aims to become New Zealand’s leading digital bank by utilizing IBM cloud.

The new five year agreement is part of an extensive services and technology contract which includes Westpac migrating some of its business critical IT systems into IBM’s Auckland data center, enabling enhanced customer service.

Utilizing IBM private cloud to develop and test tools within a dedicated environment, Westpac will deploy new online and mobile banking services and across multiple devices and platforms.

In addition, IBM is helping Westpac respond with enhanced online security features, such as the ability to manage identity and access through a single user ID.

“IBM’s private cloud platform will further enable increased development of Westpac’s digital capabilities as it responds to customer demands for a more personalized, convenient way of banking,” said Jason Millett, interim chief information officer of Westpac.

Gartner says poor return on equity will drive more than 60 percent of banks worldwide to process the majority of their transactions in the cloud by 2016.

Westpac will also optimize its IT infrastructure by renewing IBM mainframe services, midrange and storage platforms and migrating some services to IBM’s Level 3 data center providing even greater data resiliency.

Source:http://www.infotechlead.com/2014/08/21/ibm-inks-private-cloud-deal-westpac-new-zealand-24899

HP Systems Get A Bump Thanks To IBM-Lenovo Deal

August 22nd, 2014

The expected drawn-out regulatory approval process for IBM’s sale of its System x X86 server business to Lenovo Group has put somOutsourcing5e bounce into the X86 server line from Hewlett-Packard. In the third quarter of fiscal 2014 ended in July, HP said that it believes it has gained market share against its peers in systems. The company is also seeing market share gains against Cisco in networking and is getting good growth on so-called converged storage platforms even as traditional storage arrays continue to show weakness.

In the quarter, revenues across all product lines at HP rose by 1.3 percent to $27.6 billion. HP’s research and development costs rose by 11.3 percent to $887 million and it also booked $649 million in restructuring charges, which was a bit higher than expected. These and other downward pressures took their toll on net income, which fell by 29.1 percent to $985 million. The overall restructuring charges for fiscal 2014 will be in line with expectations. HP announced a broad restructuring back in May 2012, with up to 27,000 employees being let go, and earlier this year the company expanded that layoff to a total of 34,000 employees.

HP’s Enterprise Group, which sells servers, storage, switches, and services for all of this gear, had a 1.9 percent revenue increase in the quarter, to $6.89 billion, but earnings before taxes fell 5.6 percent to $966 million. HP does not provide pre-tax earnings for the various divisions within Enterprise Group, but it does break out revenues.

The Industry Standard Servers division, which peddles X86 iron and which is roughly analogous to IBM’s System x division, had $3.1 billion in revenues, up 8.6 percent and growing many times faster than the market at large. HP’s ProLiant and other X86 server sales rose across all geographic regions and average selling prices rose in the double digits as customers added more features and peripherals to the systems they acquired. HP is facing a tough compare for its fiscal Q4, however, after winning a huge deal last fall from Microsoft for its Bing search engine.

“We are seeing good early traction with service providers as a result of our partnership with Foxconn to produce a line of cloud-optimized servers,” explained HP CEO Meg Whitman on a call with Wall Street analysts going over the numbers, referring to a deal that HP inked with the giant Chinese manufacturer back in April to make a whole new line of as-yet unannounced cloudy systems. “And we moved aggressively to take advantage of the uncertainty customers feel about the IBM-Lenovo transaction. In head-to-head fights with IBM for deals, we are seeing clear improvement in win rates –all this while delivering stable growth margins.”

That seems to indicate that the margin pressure is not coming from X86 servers, but in other divisions within the Enterprise Group. The Business Critical Systems division, which includes machines running HP-UX Unix, OpenVMS, and NonStop platforms as well as the new high-end Xeon E7 systems such as the “Project Kraken” ProLiant Superdome ConvergedSystem 900 that debuted in June for SAP HANA in-memory workloads, had an 18 percent decline to $233 million, but was actually up one point sequentially and, importantly, HP saw order growth in the quarter for BCS products. This was no doubt an effect of the new Kraken systems, and the news that HP has licensed OpenVMS to VMS Software for future development and support will very likely help stabilize BCS sales going forward.

HP’s Networking division had $672 million in sales, up 4.4 percent, and Whitman said that the company had good growth in switching in particular but did not call out any specific figures except to say that the networking unit had outperformed Cisco once again.

On the storage front, sales of $796 million, down 4.4 percent, were lower than expected. Traditional storage arrays saw a 14 percent decline to $432 million, but converged storage, HP”s catch-word phrase for modern arrays, had 9 percent growth to $364 million and the 3PAR line returned to double-digit growth. If you add up 3PAR plus HP’s high-end XP and EVA arrays, revenues for these three as a group were down 7 percent year-on-year, but Lesjak said that HP nonetheless expected to gain market share in the external disk array market in the second calendar quarter. Whitman said that HP continues to grow its share in midrange storage, which frankly was always the strength of Compaq anyway. “As the market shifts increasingly from high-end to midrange storage, it is pressuring overall market growth,” explained Whitman. “But I believe this plays into a sweet spot for HP, which bodes well for us in the long term.”

Technology Services, the support arm of the Enterprise Group, had a 2.6 percent decline in the third fiscal quarter, to just a smidgen under $2.1 billion . Lower volumes of systems sales in prior quarters were the main cause of the decline, and Whitman said that margins were holding steady despite the decline.

On the cloud front, Whitman said that CloudSystem hardware showed double-digit growth in the third quarter, and that the commercial version of HP’s Helion OpenStack implementation would be ready for commercial use by October. HP has cooked up a Helion development platform for coders and is also getting ready to launch a set of OpenStack support and implementation services to go along with the Helion delivery. Whitman also said that HP would end up being the leading code contributor to the future “Juno” release of OpenStack, which is slated for release on October 16.

HP Software had its challenges during the quarter, with sales off 5 percent to $959 million. But pretax margins help up at $203 million in the quarter. The Autonomy tools for dealing with unstructured data and the Vertica parallel database both had revenue declines in the quarter, but security software revenues were up a bit. HP inked a big partnership with Hortonworks to integrate its Hadoop distribution into the Haven data analytics platform, and HP hopes this will bear fruit for the software group in the coming quarters. In general, Whitman said that HP software was shifting to a SaaS and subscription model for much of its software and away from licensing, which would have a near-time downward impact on revenues but would level things out over the long term. Bookings for IT management tools, including OpenView and other tools, delivered on a SaaS model rose by double-digits in the quarter, as an example. But across all of HP Software, license revenues were off 16 percent while SaaS revenues rose by 8 percent.

In other areas, HP Financial Services, which finances HP’s various wares for partners and customers, had revenues of $855 million, down 3 percent, and delivered $79 million in operating profits. HP Enterprise Services, which is mostly the old EDS systems integration and outsourcing business, had a 6.4 percent decline to $5.59 billion, and the printing business booked the same $5.59 billion in sales after a 3.8 percent decline. Thanks to the expiration of Windows XP support, the PC business had a nice uptick, rising 11.9 percent to $8.65 billion. That is probably not sustainable growth over the long term, but the PC business is actually helping HP’s bottom line right now, as hard as that might be to believe.

Source:http://www.enterprisetech.com/2014/08/21/hp-systems-get-bump-thanks-ibm-lenovo-deal/

IBM on board as Westpac bids to become NZ’s leading digital bank

August 21st, 2014

IBM has today announced that Westpac New Zealand has selected the company’s private cloud technology to support its goal to be New Zealand’s leading digital bank.Outsourcing52

The new five year agreement is part of an extensive services and technology contract which includes Westpac migrating some of its business critical IT systems into IBM’s Auckland data centre, enabling enhanced customer service.

The agreement supports Westpac as it embarks on a significant transformation from a traditional bank to one that uses cloud computing enabling it to address key market trends such as social and mobile adoption to influence the way consumers prefer to bank today.

As one of IBM’s long-term strategic outsourcing clients, by adopting private cloud capabilities to develop and test tools within a dedicated environment, Westpac says it will be able to deploy new online and mobile banking services faster and across multiple devices and platforms in response to customer demand.

As customers’ digital footprints expand and the bank’s security demands change, IBM is helping Westpac respond with enhanced online security features, such as the ability to manage identity and access through a single user ID.

Westpac’s Interim Chief Information Officer Jason Millett says IBM’s private cloud platform would further enable increased development of Westpac’s digital capabilities as it responds to customer demands for a more personalised, convenient way of banking.

According to Gartner, by 2016, poor return on equity will drive more than 60 percent of banks worldwide to process the majority of their transactions in the cloud.

“The platform provides a robust and advanced infrastructure enabling a seamless online banking experience across multiple devices,” Millet adds.

“This supports our goal of being New Zealand’s leading digital bank.

“In addition, IBM’s local and global expertise, commitment to work within our regulatory framework, deep knowledge of our business and industry, and responsive commercial models provide a market leading offering that can support our changing needs over time.”

Westpac will also optimise its IT infrastructure by renewing IBM mainframe services, midrange and storage platforms and migrating some services to IBM’s Level 3 data centre providing even greater data resiliency.

To meet Westpac’s optimisation objectives, IBM leveraged its global Research team and Distinguished Engineers who advised on new technology, business processes and IT governance, including more flexible, cost effective and agile approaches to IT service delivery.

“Westpac’s underlying IT systems must operate uninterrupted, be secure and be able to support future needs as customers increasingly engage on mobiles and tablet devices,” adds Rob Lee, IBM New Zealand Managing Director.

“Our relationship with Westpac New Zealand is one of our longest and closest, marked by a high degree of innovation and collaboration.

“We continue to invest in skills and advanced technologies including our cloud solutions to help deliver on their vision to be New Zealand’s leading digital bank.”

IBM has prime responsibility for managing Westpac’s key infrastructure services, under an agreement that was first signed in 2000. In 2013 Westpac became one of the first clients of IBM New Zealand’s Delivery Centre at Unitec in Auckland, employing post-graduate and under-graduate computer science students.

Westpac extended its strategic outsourcing agreement with IBM based on the strength of the relationship and IBM’s ability to bring new innovations such as cloud technology to the IT infrastructure.

IBM New Zealand launched its hybrid cloud in March to offer local customers greater visibility, transparency and control of data security and placement.

This followed an announcement earlier in the year that IBM will invest $1.2billion globally into comprehensively expanding its cloud footprint.

IBM’s global data centre network is key to helping enterprise clients move operations into the cloud in a hybrid model that preserves existing IT investments and connects on premises systems of record with new cloud-based systems of engagement achieving the best of both worlds.

Source:http://techday.com/it-brief/news/ibm-on-board-as-westpac-bids-to-become-nzs-leading-digital-bank/190513/

IBM, Veda extend outsourcing agreement

August 20th, 2014

IBM has signed a five-year, multi-million dollar agreement with Australian-listed credit information and analysis firm Veda to extend its existing outsourcing relationship.Outsourcing48

IBM says the agreement with Veda, now includes cloud services as well as the continuing delivery of a “highly reliable and resilient infrastructure”.

“The contract reflects the deep partnership between IBM and Veda, and the value that the partnership has delivered to our business,” said Veda’s CEO Nerida Caesar.

“Being a business based on using data and analytics to provide insights, we are constantly looking at the best way to manage and deliver the most accurate insights to our clients. To this end, we have already deployed one of our systems that supports comprehensive credit reporting (CCR) on IBM’s flexible infrastructure.”

The extended agreement assists Veda’s growth strategy, as it provides a scalable solution to support the company’s introduction of CCR products in response to the credit industry’s most significant reform in recent times.

Included as part of the amendments to the Privacy Act 1988, CCR requires five additional data fields in order to provide a more complete picture of a consumer’s credit activity. Veda expects that the volume and mix of data relating to credit reporting will grow rapidly as companies realise the benefits of CCR.

Jeffrey Rhoda, General  Manager, IBM Australia and New Zealand, said the changes to credit reporting requirements had prompted Veda to expand its relationship with IBM, to support the expected growth of data and analysis that CCR will bring.

“We are excited to support Veda as it navigates through a significant time of transformation within the credit reporting industry. The ability to support clients during phases of critical growth in a complex business environment is what differentiates IBM as the leading infrastructure and cloud service provider,” Rhoda said.

Veda’s customers range from financial services organisations, utility companies and telecommunications providers, with its core product offering being the provision of credit reports in relation to individuals and businesses. It carries credit information on 20 million individuals and 5.7 million commercial entities in Australia and New Zealand.

Veda listed on the ASX in December last year and is continuing to grow its product and market portfolio, with the IBM project a key strategic pillar to support the company’s growth plans.

Source:http://www.itwire.com/business-it-news/outsourcing/65125-ibm-veda-extend-outsourcing-agreement

IT firms may face trouble as delays in outsourcing contracts push deals farther away for cos

August 20th, 2014

Information technology outsourcing companies, including Indian software exporters, could be in for trouble as almost every second contract to be awarded during the first quarter of this fiscal year got pushed back, underlining the choppy demand flagged by software exporters, including Cognizant and Wipro. Outsourcing47

Public sector, financial services and manufacturing clients are taking time to outsource IT contracts as about 40% of these extended beyond expiry dates during the April-June period, estimates London-based IT research firm Ovum.

“The 40% figure is still very high as it is usually 10-20%,” said Jens Butler, principal IT analyst at Ovum, adding that delays were on account of various reasons, including “changing scope, position of the buyer in terms of what they’re looking for, ongoing negotiations and restructuring”.

In monetary terms, more than $2.7 billion of the $13.7 billion of contracts got delayed, making Ovum believe that this could eventually slow down the need for speed and agility that is becoming critical for buyers. “It could become worrisome if it starts to extend beyond a year and the scope or scale of deals changes dramatically,” said Butler. This extension in deals getting closed comes despite the willingness of homegrown IT firms to either pay money upfront or buy assets to swing deals in their favour as they try to remain competitive against the big global players, including Accenture and IBM.

The delays are already making such software exporters jumpy, forcing Nasdaq-listed Cognizant to cut its full-year revenue growth estimate, only the second time ev er in its two-decade history, by 2.5%. Bangalore-based WiproBSE 1.13 % expects business to remain soft in its largest unit–banking, financial services and insurance (BFSI).

“Clients across BFSI space are taking time to close deals, which has caused some hiccups,” Wipro BFSI chief executive Shaji Farooq told ET in an interview last week. Although Farooq remained optimistic that these issues could possibly get resolved by the end of the calendar year, some industry captains believe capital expenditure deferrals are leading company bosses to hold back on IT spending.

“Everybody thinks you start a year and good times will rock and roll,” said Gaurav Johri, head of BFSI at Mindtree. “(Problem is) it’s not coming back to the pre-2007 period. Every CEO will extrapolate its growth. And since there is lack of confidence in that number, every CEO wants to keep a check on budgets,” said Johri.Nonetheless, he said that Bangalore-based Mindtree has not seen any “significant extension” in contracts.

Some experts, however, do not think it is a distress situation yet as they believe clients sometimes delay start times for deal renegotiations due to other pressing business issues.

“Most of these deals are complicated ones and it is not unusual to have deal cycles that can out-run expiry dates on deals,” said Sid Pai, Asia-Pacific president at outsourcing advisory ISG. “Clients can and do use short-term extensions on current contracts while their renewal and/or renegotiation processes are going on. Even in new scope deals, these deal cycles can often run six to nine months, so it is not unusual to see extended deal cycles where there are incumbent providers already.”

Source: http://economictimes.indiatimes.com/tech/ites/it-firms-may-face-trouble-as-delays-in-outsourcing-contracts-push-deals-farther-away-for-cos/articleshow/40389990.cms

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