PowerPoint Presentation

Group 2 - SFRLONameRoll NumberK SivaramPGP/17/149Viswesh SPGP/17/188Girish Ganapath JPGP/17/207S AkshayaPGP/17/233R AdharshPGP/17/288

IBM and the Emerging Cloud Computing Industry1

IBM The Rise of a Giant2

2The Decline of Mainframe Computing3

3Key Issues to be Addressed4

4Change in Leadership5

Louis Gerstner

Believed in providing integrated solutions but keeping company together

Three strategic pillars

Pioneering the e-business

Hope was till there, even if innovation cycle was missed5Change in Leadership6

Sam Palmisano

Pushed IBM beyond being equipment supplier valuable component to value chain activities

Software and consulting were primary drivers , high-margin hardware components

Sold off IBMs PC division built software expertise through various acquisitions

Challenges included new players from India and emergence of cloud

6Cloud Computing7

7Emerging Ecosystem of Cloud Competitors8

Under consumer applications - Googles App engine and Salesforce.com became the footholds of platform as a service marketSalesforce.com active in software-as-a-service segmentIncreasing number of enterprise applications offered as cloud-based servicesCloud service market was estimated to lie in the range of $42-$160 BN by Merrill lynch in 2012The public cloud-infrastructure segment was dominated by Amazon, followed by RackspaceCompanies like Rightscale, Cloudkick and enStratus which offered tools to manage public cloud infrastructures emergedThere was scope for telecom companies like AT&T to capitalize on their infrastructures, scale and cost capabilities to enter cloud technologiesThere was initial hesitation in private cloud-infrastructure as it required significant investments & reconfiguration of data centers8IBMs Cloud Strategy9

9IBMs Cloud Strategy10

10Recommendations11

Reference PointCategorization of the various functions as income generating and support functions.Concentration on income generating functions as cloud computing is a evolving technology and could face strategic discontinuitiesIBM has bitter experience with vertically integrating the entire value chain in case of PCs e.g. possession of sales force and data centers became obsolete in PC marketWhom to work with?Radical exploration Rich pool of talented employees 47756 patents But opting for local search/ internal boundary spanning might Lead to familiarity trap/ competency trapAcquisitions of smaller businesses for income generating functionsLeads to IBMs portfolio expansion Entire share of value created (there is not much difference between small and big companies in cloud spaceStrategic partnerships with vendors for support functionsSimilarDistantExternalInternalTechnological Boundary SpanningOrganizational Boundary SpanningTargetHybrid private + public cloudServicePartnersIBMPlatform103139Application699Infrastructure325Business process023IBMs current strategy (as of 2015)Currently Amazon web services is the leader in public cloud having an significant edge over its competitors. IBM missed Public cloud initially and trying to enter the space through acquisition of Softlayer in 2013. 1112THANK YOU