IBM Refocuses on Hardware, Cloud Computing as IT Costs Rise

Rising IT costs have forced many businesses to change their tune, restructure their spending and tweak their allocation of resources. It’s a constant state of transition, reacting to and affecting the market for the purpose of turning a profit. That’s why cloud computing has seen such a significant boost in the past few years within the enterprise sector. IBM is benefiting from this, despite overall cost cuts in many businesses’ IT departments.

IBM has seen an increase in interest around its hardware services, selling more of its server systems while software sees a decline. Lawsuits and big plays from competitors such as Oracle have also chipped away at IBM’s shield, but the potential around hardware will also allow the company to refocus its efforts and strategies.

Several businesses are taking to IBM’s cloud computing solutions, making for a widespread appeal across multiple industries. Several banks across the globe have taken to IBM’s hardware and storage solutions, while the legal industry has turned to IBM to handle data storage, moving and handling. Erich Clementi, IBM’s VP of strategy and general manager of enterprise initiatives, outlined the company’s focus on old businesses at GigaOM’s Structure conference in San Francisco last week, speaking on security and areas of interest;

“Our focus on enterprise forces us to deal with the infrastructures people have, not the ones we wish they had,” said Clementi. He said the enterprise is not going to accept a lower bar for privacy and security just because consumer norms are changing.

This statement reminds us of the long-term goals of companies like IBM, with their focus on the proven behavior of businesses instead of leading trends. It’s an important stance to take, particularly with security issues on the rise, and an ever-increasing demand for cloud computing solutions.

Businesses have been able to find several options to meet their growing need for smart technology implementation, with demand for open-source solutions growing as well. Red Hat is another company that has benefited from the practical restructuring of enterprise IT.