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Elementor #8312

As the competition heats up in the cloud sphere, IBM has recently acknowledged their performance last year did not meet expectations while acquisition deals.

IBM’s 2013 annual report stated that the company’s cloud business grew 69% in 2013, delivering US$4.4 billion of revenue. However, shrinking demand for hardware and weak sales have caused a tumble in revenue over the last seven quarters.

“With the fact that around 85% of new software is being designed with cloud compatibility in mind, it is of no surprise to see a surge of investments in such platforms.

“IBM has been slow in the cloud game and is trying to catch up now. What they needs is a strong business network that can help them get there and we already see this demonstrated through their recent acquisitions,” said Vivek Sood, CEO of Global Supply Chain Group.

Last year, IBM bought infrastructure-as-a-service provider SoftLayer for $2 billion, before committing another $1.2 billion to building new locations for its SoftLayer public cloud services.

In March this year, IBM also completed an acquisition deal with Cloudant, a startup database-as-a-service (DBaaS) provider.

While there has been a significant focus on cloud as a strategy, IBM, who provides cloud capabilities to eighty percent of Fortune 500 companies, is not quitting hardware.

The company’s CEO – Ginni Rometty – wrote in a letter to investors: “IBM will remain a leader in high-performance and high-end systems, storage and cognitive computing, and we will continue to invest in R&D for advanced semiconductor technology.”

One of IBM’s attempts to revamp its hardware offerings includes selling the majority of its low-end server business to Lenovo for $2.3 billion in January this year.

A Synergy Research report in February 2014 indicates that Amazon still dominates the pure cloud platform market, boasting a 65% growth in Q4, 2013 compared to an overall market growth of 52%.

While Pivotal aims to be the Linux of the cloud, VMware recently launched Horizon desktop-as-a-service and Amazon’s equivalent WorkSpaces is still in Limited Preview phase.

The tech giant Google is also among those serious about competing against Amazon, with the announcement of Google Cloud Platform’s multi-country developer roadshow on Tuesday.

“Just like how big companies used to win big with hardware, they now need to apply a similar growth framework, not necessarily in terms of technicality.

The idea of advanced product phasing is becoming more important, which is the ability to strategically roll out new products with a profit-innovation balance,” said Sood – also the author of “The 5-Star Business Network”.

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ABOUT THE PRINCIPAL AUTHOR

Today, Vivek and his partners are among 20-30 people on the planet earth who have this deep understanding of supply chain systems, practices and tools. CEOs, COOs, executives and Boards call them in most challenging situations once they know the full potential of supply chain based transformations. Following are key milestones in Vivek's journey:

  • Started in 1983 as a merchant navy cadet at 18 years age, worked his way to qualify as a Captain – qualified to take command of any merchant ship, worldwide.
  • Earned a top tier MBA from UNSW at the top of his class.
  • Joined highly regarded strategy consulting firm Booz Allen & Hamilton, consulting to the CEOs, Boards and senior management of global corporations within Australia.
  • To learn and specialise in supply chain – against all odds, sought out the co-inventor of supply chain in Germany and convinced him to be a partner in his firm, GLOBAL SUPPLY CHAIN GROUP, launched in January 2000.
  • More than 500 successful blue chip projects with high impact business transformations in large corporations using the full power of SUPPLY CHAIN MANAGEMENT.
  • 4 Seminal and path breaking business books IN SUPPLY CHAIN MANAGEMENT – these are available in bookstores and universities and libraries worldwide.

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THE 5-STAR BUSINESS NETWORK

If you are deeply passionate about the world of business and supply chain networks as I am, and enjoy digging answers to critical questions that will help build and steer your business with wisdom, then join me. This book is a journey of exploration through the world of business networks that run along the veins of today’s commercial world.

4.3
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OUTPERFORM OUTSOURCE OUTPROFIT

The trend of outsourcing continues to grow unabated with the whole gamut of services, from simple to mission-critical tasks. There is not a single company on earth that does not outsource anything. It is not just about cost arbitrage, it is also a finer expression of division of labour at the organisational level. Like all leverage, outsourcing is a double-edged sword too. On one hand, it allows you to do more, faster. On the other hand, if it goes bad, it can easily kill your business. If you do not believe that is possible – you can google the Fox Meyer saga from the 90s and see for yourself.

4.3
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UNCHAIN YOUR CORPORATION

Businesses Are Chained By Unseen Chains. If You Are Looking For Ways To “Unchain Your Corporation” A Successful Business Transformation Is Required.

Successful Business Transformations Are Difficult, Yet Rewarding.

Business Transformation Is Fast Becoming A Question Of Survival In The Modern Globalised Era.

Modern Supply Chains Integrate Businesses And Economies Faster By Systematic Information Sharing From Internal And External Sources.

Companies Can Multiply Profits By Progressively Ramping Up Cohesion And Collaboration Of All Moving Parts In B2B Network To Achieve Tighter Integration.

4.3
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GREEN SUPPLY CHAIN – AN ACTION MANIFESTO

It is generally accepted that environmental consciousness is now changing to environmental proactiveness as organizations are discovering that it makes good commercial sense.

Boards are asking the management to review their policies related to environmental norms, not only to bolster their corporate social responsibility aims, but also because consumers are asking for greener supply chains

It is also widely agreed that consumers will increasingly prefer to buy more and even pay more for products or services provided in an environmentally sound manner.

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