The world of cryptography moves at a very slow, but steady pace. New cryptography standards must be vetted over an extended period and therefore new threats to existing standards need to be judged by decades-long timelines because updating crypto standards is a multiyear journey. Quantum computing is an important threat looming on the horizon. Quantum computers can solve many equations simultaneously, and based on Shor’s Algorithm, crypto experts estimate that they will be able to crack asymmetric encryption. In addition, Grover’s algorithm provides a quadratic reduction in decryption time of symmetric encryption. And the question these same crypto experts try to answer is not if this will happen, but when.
Today’s crypto algorithms use mathematical problems such as factorization of large numbers to protect data. With fault-tolerant quantum computers, factorization can be solved in theory in just a few hours using Shor’s algorithm. This same capability also compromises cryptographic methods based on the difficulty of solving the discrete logarithm problems.
The term used to describe these new, sturdier crypto standards is “quantum safe.” The challenge is we don’t know exactly when fault-tolerant quantum computers will have the power to consistently break existing encryption standards, which are now in wide use. There’s also a concern that some parties could obtain and store encrypted data for decryption later, when suitably capable quantum computers are available. Even if the data is over ten years old, there still could be relevant confidential information in the stored data. Think state secrets, financial and securities records and transactions, health records, or even private or classified communications between public and/or government figures.
U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) believes it’s possible that RSA2048 encryption can be cracked by 2035. Other U.S. government agencies and other security-minded entities have similar timelines. Rather than wait for the last minute to upgrade security, NIST started a competition to develop quantum-safe encryption back in 2016. After several rounds of reviews, on July 5th of this year, NIST chose four algorithms for the final stages of review before setting the standard. IBM developed three of them, two of those are supported in IBM’s Z16 mainframe today.
The new IBM crypto algorithms are based on a family of math problems called structured lattices. Lattice problems have a unique characteristic that will make it reasonably difficult to solve with quantum computing. Structured lattice problems require solving for two unknowns – a multiplier array and an offset and is extremely difficult for quantum computing to solve the lattice problems. The shortest vector problem (SVP) and the closest vector problem (CVP) – upon which lattice cryptography is built – is considered extremely difficult to a quantum computer to solve. Each candidate crypto algorithm is evaluated not just for data security, but also for performance - the overhead cannot be too large for wide spread use.
The final selections are expected in 2024, but there’s still a chance there will be changes before the final standards are released.
IBM Supports Quantum Safe in New Z-Series Mainframes
IBM made a strategic bet before the final NIST selections. The recently released IBM Z16 Series computers already support two of the final four quantum safe crypto candidates: the CRYSTALS-Kyber public-key encryption and the CRYSTALS-Dilithium digital signature algorithms. IBM is set to work with the industry to substantiate these algorithms in production systems. Initially, IBM is using its tape drive storage systems as a test platform. Because tape is often used for cold storage, it's an excellent medium for long-term data protection. IBM is working with its client base to find the appropriate way to roll out quantum-safe encryption to the market. This must be approached as a life cycle transformation. And, in fact, IBM is working with its customers to create a crypto-agile solution, which allows the exact crypto algorithm to change at any point in time without disrupting the entire system. It’s not just a rip and replace process. With crypto-agility, the algorithm is abstracted from the system software stack so a new algorithms can be deployed seamlessly. IBM is developing tools making crypto status part of the overall observability with a suitable dashboard to see crypto events, etc.
These new algorithms must be deployable to existing computing platforms, even at the edge. However, it's not going to feasible to upgrade every system; it’s probably going to be an industry-by-industry effort and industry consortia will be required. For example, IBM, GSMA (Global System for Mobile Communication Association), and Vodafone recently announced they will work via a GSMA Task Force to identify a process to implement quantum-safe technologies across critical telecommunications infrastructure, including the networks underpinning internet access and public utility management. The telecommunication network carries financial data, health information, public-sector infrastructure systems, and sensitive business data which needs to be protected as it traverses global networks.
What’s Next for Quantum Safe Algorithms
Fault-tolerant quantum computing is coming. When it will be available is still a guessing game, but the people who most care about data security are targeting 2035 to have quantum-safe cryptographic algorithms in place to meet the threat. But that’s not good enough. We need to start protecting critical data and infrastructure sooner than that, considering the length of time systems are deployed in the field and data is stored. Systems such as satellites and power stations are not easy to update in the field.
And there’s data that must be stored securely for future retrieval, including HIPAA (for medical applications), tax records, toxic substance control act and clinical trial data, and others.
Even after the deployment of these new algorithms, this is not the end – there may still be developments that can break even the next generation quantum-safe algorithms. The struggle between those that want to keep systems and data safe and those that want to crack them continues and why companies should look to building in crypto agility into their security plans.
Tirias Research tracks and consults for companies throughout the electronics ecosystem from semiconductors to systems and sensors to the cloud. Members of the Tirias Research team have consulted for IBM and other companies throughout the Security, AI and Quantum ecosystems.
“We can‘t be essential unless our partners are skilled in our products and confident in going to their clients with our products and selling them with us and for IBM,” IBM channel chief Kate Woolley said.
IBM has started giving registered members of its PartnerWorld program access to the training, badges and enablement IBM sales employees get along with a new learning hub for accessing materials.
The expansion is part of the Armonk, N.Y.-based tech giant’s investment in its partner program, IBM channel chief Kate Woolley told CRN in an interview.
“We can‘t be essential unless our partners are skilled in our products and confident in going to their clients with our products and selling them with us and for IBM,” said Woolley (pictured), general manager of the IBM ecosystem.
[RELATED: Channel Chief Kate Woolley: ‘No Better Time To Be An IBM Partner’]
Partners now have access to sales and technical badges showing industry expertise, according to a blog post Tuesday. Badges are shareable on LinkedIn and other professional social platforms. IBM sales representatives and partners will receive new content at the same time as it becomes available.
“This is the next step in that journey in terms of making sure that all of our registered partners have access to all of the same training, all of the same enablement materials as IBMers,” Woolley told CRN. “That’s the big message that we want people to hear. And then also in line with continuing to make it easier to do business with IBM, this has all been done through a much improved digital experience in terms of how our partners are able to access and consume.”
Among the materials available to IBM partners are scripts for sales demonstrations, templates for sales presentations and positioning offerings compared to competitors, white papers, analyst reports and solution briefs. Skilling and enablement materials are available through a new learning hub IBM has launched.
“The partners are telling us they want more expertise on their teams in terms of the IBM products that they‘re able to sell and how equipped they are to sell them,” Woolley said. “And as we look at what we’re hearing from clients as well, clients want that. … Our clients are saying, ‘We want more technical expertise. We want more experiential selling. We want IBM’ – and that means the IBM ecosystem as well – ‘to have all of that expertise and to have access to all the right enablement material to be able to engage with us as clients.’”
The company has doubled the number of brand-specialized partner sellers in the ecosystem and increased the number of technical partner sellers by more than 35 percent, according to IBM.
The company’s recent program changes have led to improved deal registration and introduced to partners more than 7,000 potential deals valued at more than $500 million globally, according to IBM. Those numbers are based on IBM sales data from January 2022 to August.
Along with the expanded access to training and enablement resources, Woolley told CRN that another example of aligning the IBM sales force and partners was a single sales kickoff event for employees and partners. A year ago, two separate events were held.
“I want our partners to continue to feel and see this as a big investment in them and representative of how focused we are on the ecosystem and how invested we are,” she said.
A four-year bachelor’s degree has long been the first rung to climbing America’s corporate ladder.
But the move to prioritize skills over a college education is sweeping through some of America’s largest companies, including Google, EY, Microsoft, and Apple. Strong proponents say the shift helps circumvent a needless barrier to workplace diversity.
“I really do believe an inclusive diverse workforce is better for your company, it’s good for the business,” Ginni Rometty, former IBM CEO, told Fortune Media CEO Alan Murray during a panel last month for Connect, Fortune’s executive education community. “That’s not just altruistic.”
Under Rometty’s leadership in 2016, tech giant IBM coined the term “new collar jobs” in reference to roles that require a specific set of skills rather than a four-year degree. It’s a personal commitment for Rometty, one that hits close to home for the 40-year IBM veteran.
When Rometty was 16, her father left the family, leaving her mother, who’d never worked outside the home, suddenly in the position to provide.
“She had four children and nothing past high school, and she had to get a job to…get us out of this downward spiral,” Rometty recalled to Murray. “What I saw in that was that my mother had aptitude; she wasn’t dumb, she just didn’t have access, and that forever stayed in my mind.”
When Rometty became CEO in 2012 following the Great Recession, the U.S. unemployment rate hovered around 8%. Despite the influx of applicants, she struggled to find employees who were trained in the particular cybersecurity area she was looking for.
“I realized I couldn’t hire them, so I had to start building them,” she said.
In 2011, IBM launched a corporate social responsibility effort called the Pathways in Technology Early College High School (P-TECH) in Brooklyn. It’s since expanded to 11 states in the U.S. and 28 countries.
Through P-TECH, Rometty visited “a very poor high school in a bad neighborhood” that received the company’s support, as well as a community college where IBM was offering help with a technology-based curriculum and internships.
“Voilà! These kids could do the work. I didn’t have [applicants with] college degrees, so I learned that propensity to learn is way more important than just having a degree,” Rometty said.
Realizing the students were fully capable of the tasks that IBM needed moved Rometty to return to the drawing board when it came to IBM’s own application process and whom it was reaching. She said that at the time, 95% of job openings at IBM required a four-year degree. As of January 2021, less than half do, and the company is continuously reevaluating its roles.
For the jobs that now no longer require degrees and instead rely on skills and willingness to learn, IBM had always hired Ph.D. holders from the very best Ivy League schools, Rometty told Murray. But data shows that the degree-less hires for the same jobs performed just as well. “They were more loyal, higher retention, and many went on to get college degrees,” she said.
Rometty has since become cochair of OneTen, a civic organization committed to hiring, promoting, and advancing 1 million Black individuals without four-year degrees within the next 10 years.
If college degrees no longer become compulsory for white-collar jobs, many other qualifications—skills that couldn’t be easily taught in a boot camp, apprenticeship program, or in the first month on the job—could die off, too, University of Virginia Darden School of Business professor Sean Martin told Fortune last year.
“The companies themselves miss out on people that research suggests…might be less entitled, more culturally savvy, more desirous of being there,” Martin said. Rather than pedigree, he added, hiring managers should look for motivation.
That’s certainly the case at IBM. Once the company widened its scope, Rometty said, the propensity to learn quickly became more of an important hiring factor than just a degree.
This story was originally featured on Fortune.com
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Founded in 1911 as a Computing-Tabulating-Recording Company, International Business Machines (IBM) needs to keep its finger on the pulse of the development of information technology not to be ousted by younger tech giants like Google, Microsoft, Apple, and Amazon. With the advent of the internet, IBM needed to widen the spectrum of its products and services to retain its strong position in the tech field. Although the company lost its dominance, having only a 5% market share in 2021, as opposed to 68% shared by Microsoft, Amazon, and Google, it has many spectacular achievements to its credit. IBM holds more patents than any other technology company and takes pride in employees who have earned five Nobel Prizes, four Turing Awards, five National Medals of Technology, and five National Medals of Science. And it had been the top tech company for longer than any of the titans dominating the market now.
Also called “Big Blue,” IBM indeed has an impressive pedigree. After starting to produce hardware at the beginning of the last century, it thrived in this business for decades and became the leading provider of mainframe computers worldwide. IBM’s gross income had inexorably grown in the last part of the twentieth century, expanding from $14.450 billion earned in 1975 to $71.940 billion made in 1995. The company’s revenue skyrocketed to the record level of $106.9 billion in 2011, after which it has steadily been declining amidst its transition into new technologies and lines of business. To move with the times and survive the competition from other tech titans, IBM gradually shifted its focus from hardware to software and services. It began to devote more energy and money to cloud-based services and cognitive computing. IBM focuses now on offering primarily network services, application services, cloud services, digital workplace services, business processes and operations, technology consulting services, and AI services. IBM Watson, a cognitive system capable of answering questions posed in natural language, has become the company’s high-visibility offering in the technology field. IBM has a strong faith in Watson, promoting the system as a benevolent digital assistant that would help hospitals, offices, factories, and farms. The company’s white paper referred to Watson as “the future of knowing.”
To see how well IBM has prepared for, what it calls, the new age of understanding, study the statistical data presented below.
Sources: IBM, Wikipedia
Once an unparalleled tech giant, IBM has been struggling for the last decade. It had to adjust to the changing world by selling its low-margin businesses and investing in high-margin ones. To implement its strategies, Big Blue sold IBM WebSphere Commerce to HCL Technologies in 2018 and a part of the Watson Health business at the beginning of this year. Although IBM’s earnings are still high, they do not reach the levels hit between 2006 and 2012. The company’s annual revenue skyrocketed to $106.9 billion in 2011, whereas it was only $57 billion last year. In the second quarter of 2022, IBM’s earnings dropped below expectations. IBM’s falling fortune is reflected in the table below:
IBM’s Annual Revenue since 2000 (in $US Billion)
|Year||Annual Revenue (in $US Billion)|
|2022 (Q1; Q2)||$14.2 billion; $15.5 billion|
Source: Statista; IBM
Big Blue has repeatedly changed the segment reporting to reflect its move away from being hardware, software, and service company towards becoming a cognitive solutions and cloud platform company. It changed its segment reporting in 2016, 2019, and 2021. The last change was dictated by IBM’s need to align its segment reporting with its platform-centric approach to hybrid cloud and AI. There are presently six segments in IBM’s business: Technology Services and Cloud Platforms, Infrastructure, Software, Consulting, Financing, and Other. In 2021, IBM’s software segment generated $24.14 billion of its global revenue of $57.35 billion. In 2022 so far, the Software division earned $5.77 billion and $6.2 billion, in the first and second quarters, respectively. The Consulting sector brought the company $4.83 billion in Q1 and $4.8 billion in Q2 of the current year. The revenue earned by the Infrastructure segment amounted to $3.22 billion in the first quarter and $4.0 billion in the second quarter. Revenues generated by IBM’s segments in the last two years are shown in the table below:
IBM’s Annual Revenue by Segment for 2020-2021 (in $US billion)
|Technology Services and Cloud||$25.00||$28.00|
In the second quarter of 2022, IBM’s Cloud Infrastructure had only a 4% share of the worldwide market, lagging behind Amazon, Azure, and Google Cloud. The spending on global cloud infrastructure services soared to $55 billion and thus brought the industry’s total for the twelve months to more than $203.5 billion. Outshining IBM, Amazon and Microsoft together accounted for more than half of cloud infrastructure revenues in the three months that ended on June 30.
These figures show how much Big Blue fell from grace because, in the past, it used to enjoy the leading position. In 2017, IBM reported cloud revenue growth of 33% year-over-year in its first quarter earnings. In that quarter, its cloud revenue jumped to $3.5 billion. IBM’s total cloud revenue over the past 12 months that year hit $41.6 billion and catapulted IBM to the top of the list in the field of enterprise cloud. In the first quarter of 2017, today’s winners were obliged only to trail behind with lower earnings: Microsoft with $14 billion, Amazon with $12.20 billion, and Google with $10 billion. The latest market share of the main providers of cloud infrastructure can be seen in the table below:
Worldwide Market Share of Cloud Infrastructure Providers in Q2 2022
Sources: Statista, IBM
Net income is defined as a company’s net profit or loss after it has accounted for all its revenues, income items, and expenses. IBM’s net income for the quarter ending on June 30, 2022, was $1.292 billion, which constituted a 5.06% jump year-over-year. The company’s net profit for the 12 months ending on June 30, 2022, was $5.588 billion, demonstrating an increase of 4.76% year-over-year. Last year, IBM’s annual net income reached $5.743 billion, a 2.74% surge from 2020. The first year of the pandemic brought IBM a net income of $5.59 billion, which was a whopping 40.73% drop from 2019. In 2019, IBM’s annual net profit was $9.431 billion, an 8.05% advance from 2018. The uneven trajectory of IBM’s annual net income is drawn in the table below:
IBM’s Annual Net Income since 2009 (in $US Billion)
|Year||Net Income in $US Billion|
IBM is the fifth largest employer in the United States. In 2021, the company employed 282,000 people worldwide. This year, the number of people working for Big Blue dipped to 245,000. As the company has lately been struggling, experiencing drops in its revenues, it is trying to restructure its business and be on par with such tech giants as Amazon, Microsoft, Google, and Apple. Hence the decline in the number of its employees this year. The table below shows how the number of IBM’s employees has changed over the years:
IBM’s Number of Employees Worldwide from 2000 to 2022 (in 1,000s)
|Year||Number of Employees (in 1,000s)|
As the world is facing a probable recession, analysts believe that the enterprise tech sector will still continue going strong. People who are tech-savvy will turn to IBM in these unpleasant times to help them survive in a tighter economic environment and use the company’s software, consulting, and infrastructure to work productively during an economic decline. Big Blue can definitely provide the products and services people will need in the near future. IBM’s Q2 2022 results signify that technology spending in such spheres as AI, cloud, automation and networking is steady. The company beat anticipated results in the second quarter and boasted its first double-digit quarterly revenue growth in more than a decade. Automatic calculations conducted at Coinpriceforecast.com inspire faith in the company’s future and the cost of its stock. At the beginning of the year, IBM’s stock price was $116.92. At the time of writing, IBM is trading at $118.81, thus demonstrating a 2% jump from January 2022. Coinpriceforecast.com foresees that by Christmas, IBM will surge to $138. In the first half of 2023, the price of the stock might advance to $145 and end the next year at $155, adding 30% to today’s price. Whether or not these predictions prove to be correct, IBM will surely continue pushing technology and innovation forward, as it has spectacularly done since the beginning of the twentieth century.
Healthcare BI Platform Market Analysis & Forecast for Next 5 Years
This press release was orginally distributed by SBWire
Pune, Maharashtra — (SBWIRE) — 10/13/2022 — The latest survey report on Global Healthcare BI Platform Market is released by HTF MI covering various players of the industry selected from global geographies like North America, Europe, and Asia-Pacific etc. A perfect mix of quantitative & qualitative Market information highlighting developments, and industry challenges that competitors are facing along with gaps and opportunities available and would trend in Healthcare BI Platform market. The study bridges the historical data from 2017 to 2021 and is forecasted till 2028*. Some are the key & emerging players that are part of the coverage and were profiled in the current version are Microsoft (United States), IBM (United States), SAP SE (Germany), Tableau Software (United States), Micro Strategy Incorporated (United States), QlikTech International AB (United States), Information builders (United States), Sisense Inc. (United States),.
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Healthcare business intelligence technologies are essential mechanisms for healthcare businesses that need to concentrate, analyze, report, and assess their collected data. The healthcare BI platform enables organizations to configure and deploy customized quality measures based on their business needs. Additionally, it can also empower patients to be more involved in their own care. Healthcare companies can produce patient portals and dashboards to schedule appointments, fill out the paperwork online, and view billing. Patients can also be convinced of their data privacy because these platforms are invented to keep data protected and available. Moreover, BI platforms can save that data, evoke it when needed, and assign tasks like medicine schedules to providers. BI software platforms can visualize patient results in graphs and charts to share with departments.
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Geographical Analysis: North America, Europe, Asia-Pacific etc.
2) What are the companies profiled in the basic version of the report? Is it possible to customize the list?
Players that are currently profiled in the study are "Microsoft (United States), IBM (United States), SAP SE (Germany), Tableau Software (United States), Micro Strategy Incorporated (United States), QlikTech International AB (United States), Information builders (United States), Sisense Inc. (United States),". Yes list can also be customized, a maximum of 5-6 players can be swapped with the list of your target competition.
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Yes, the inclusion of additional segments is very much possible subject to data availability and the difficulty of the survey. At times our client requests market makers' information that can be covered on special request after considering requirements with the Analyst group of HTF MI.
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Investors this year increasingly turned away from dividend stocks in favor of the rising yields being offered on bonds. Given that investors can now earn a 4.3% return on a 2-year Treasury note, many prefer that guaranteed return to the risks of putting money into the stock market.
International Business Machines (IBM -1.44%) offers a dividend yield that exceeds that bond return. But with a bear market in progress, are investors better served to take a chance on the cloud stock or to take the 4.3% return at virtually zero risk?
IBM didn't participate in the bull market of the 2010s. The stock dropped as its tech businesses suffered a considerable growth slowdown. In an effort to change that, IBM pivoted into the cloud computing sector aggressively, in part via its $34 billion purchase of Red Hat in 2019. Grand View Research forecasts a compound annual growth rate of 16% through 2030 for the cloud industry. Growth like that could certainly help both IBM and its stock.
Also, IBM spun off its managed infrastructure business into a new public company, Kyndryl. This business was less of a fit with the parent company amid its pivot to the cloud. Separating it off should make it easier for IBM to grow its revenue.
Time will tell if these moves can help the stock price recover. Nonetheless, IBM currently pays its shareholders $1.65 per share every quarter, or $6.60 per share annually. At the current stock price, that adds up to a yield of 5.6% per year. Moreover, depending on your financial situation, the IRS may tax your dividends at a lower capital gains rate, which can offer an added advantage.
Additionally, IBM hiked its payout annually for 27 consecutive years, making it a Dividend Aristocrat. That status carries some importance as many income investors will be more inclined to buy and hold IBM stock because of this status. Also, since abandoning Dividend Aristocrat status tends to hurt a stock, management will probably prioritize maintaining it by continuing to raise those payouts.
Investors also can also reinvest their dividend payments into more IBM stock. However, such newly purchased shares will pay you the dividend yield at that time. The return will rise if the stock falls since investors can buy the exact cash return at a lower price. Conversely, cash yields will drop if the stock rises, but those investors still benefit since the stock has increased in value.
U.S. Treasury notes offer more stability than stocks such as IBM. Investors who purchase the 2-year Treasury note receive semiannual interest payments. At the current interest rate of 4.3%, investors will receive a 2.15% cash return on their invested amount in each of the subsequent three six-month periods. In the fourth period, when the note matures, investors receive the final 2.15% payment along with the return of their principal.
Investors should also be aware that bond values can fluctuate. If interest rates drop, the value of the bond will fall; the opposite will happen if rates rise. This affects investors if they decide to sell the bond early. Upon maturity, the note will return to its par (or nominal) value.
Additionally, bond interest payments are subject to federal income tax but exempt from state and local taxes. In some cases, this is higher than taxes on dividends. Still, bond issuers are obligated to make such payments. In contrast, IBM faces no legal obligation to continue its dividend.
Also, like with a stock, investors can reinvest their interest payments into more notes or other forms of Treasury bonds. However, those purchases will be subject to the prevailing interest rates at that time.
Investors who lack much risk tolerance should choose the Treasury note. Given its guaranteed return, they will not have to worry about volatility.
Nonetheless, for investors comfortable with buying stocks, IBM is a surprisingly strong buy. The cloud industry is in growth mode, which should propel IBM stock to a long-awaited turnaround. Moreover, IBM has repeatedly shown it wants to hold on to its Dividend Aristocrat status. This should deliver its income investors returns that are not only larger than the bonds offer, but also likely to increase in size.
IBM Corp. is making some big changes to its data storage services, announcing today that it will bring Red Hat Inc.’s storage products and associates under the “IBM Storage” umbrella.
The aim, IBM said, is to deliver a more consistent application and data storage experience across on-premises and cloud infrastructures. It’s a big move that will see IBM Spectrum Fusion data management software adopt the storage technologies of Red Hat’s OpenShift Data Foundation as its new base layer.
Even more interesting, perhaps, is that the open-source Red Hat Ceph Storage offering will be transformed into a new IBM Ceph storage offering. IBM said this will result in a unified, software-defined storage platform that’s better able to bridge the architectural divide between data centers and cloud computing providers.
The computing giant said the move is in line with its software-defined storage strategy of a “born in the cloud, for the cloud” approach that will unlock bidirectional application and data mobility based on a shared, secure and cloud-scale solution.
IBM Systems General Manager of Storage Denis Kennelly said the shift is designed to streamline the two companies’ portfolios. “By bringing together the teams and integrating our products under one roof, we are accelerating IBM’s hybrid cloud strategy while maintaining commitments to Red Hat’s customers and the open-source community,” he insisted.
The company presented the changes as a big win for customers, saying they will gain access to a more consistent set of storage services that preserve data resilience, security and governance across bare metal, virtualized and containerized environments. More specifically, IBM is promising that customers will have a more unified storage experience for container-based applications running on Red Hat OpenShift, with the ability to use IBM Spectrum Fusion, which is now based on Red Hat OpenShift Data Foundation. Doing so will provide higher performance, greater scale and more automation for OpenShift applications that require block, file and object access to data, the company said.
As for IBM Ceph, the company said this will deliver a more consistent hybrid cloud experience with enterprise-grade scale and resiliency.
Furthermore, by unifying IBM’s and Red Hat’s storage technologies, customers will be able to build a single data lakehouse on IBM Spectrum Scale to aggregate all of their unstructured data in one place. Benefits will include less time spent on maintenance, reduced data movement and redundancy, and more advanced schema management and data governance.
Industry watchers were united in their belief that the changes would be of benefit to customers. Steve McDowell of Moor Insights & Strategy told SiliconANGLE that today’s move makes a lot of sense because it enables IBM to leverage the storage strengths of both companies.
McDowell explained that although IBM Spectrum is considered to be one of the most comprehensive data management platforms around, its foundation predates the rise of cloud-native technologies. On the other hand, he said, Red Hat OpenShift was built from the ground up to support cloud-native workloads.
“IBM is evolving Spectrum Fusion to take the best of Red Hat’s efforts, and is using Red Hat’s storage software as the base for its IBM-branded products moving forward,” McDowell said. “It makes a lot of business sense for IBM to leverage R&D from Red Hat into its more traditionally proprietary systems. It also gives IBM an easy path to better serve the needs of containerized workloads.”
International Data Corp. analyst Ashish Nadkarni said the two companies are now “speaking with one voice on storage” and finally delivering on the synergies between them that were mentioned when IBM acquired Red Hat in 2019.
“The combining of the two storage teams is a win for IT organizations as it brings together the best that both offer: An industry-leading storage systems portfolio meets an industry-leading software-defined data services offering,” Nadkarni said. “This initiative enables IBM and Red Hat to streamline their family of offerings, passing the benefits to their customers.”
IBM also moved to reassure users of Red Hat’s open-source technologies that it will remain fully committed to them following today’s announcements. As part of the deal, IBM will take over Premier Sponsorship of the Ceph Foundation and, along with Red Hat’s teams, continue to drive innovation and development. Both IBM Ceph and Red Hat OpenShift will remain 100% open-source, the company added, and will continue to follow an upstream-first development model.
McDowell said today’s move would likely make some users nervous about the prospect of Red Hat’s technology becoming more proprietary over time. “IBM has been very careful since it acquired Red Hat in 2019 to keep Red Hat’s open-source business segregated from IBM’s branded offerings,” he said. “This is the first time we’re seeing IBM cross that that line, and it’s natural to wonder how blurred those lines will become.”
Still, McDowell said, he’s inclined to believe IBM’s promises as it has been very deliberate about keeping Red Hat’s storage technologies open-source.
“Red Hat OpenShift Data Foundation and Ceph will still be available as they always have, though its evolution will undoubtedly be more strongly guided by the needs of IBM’s storage business,” the analyst continued. “Overall this is a net positive for IBM and its customers. It makes good business sense and there should be minimal impact to Red Hat’s existing community.”
IBM said the first storage solutions to launch under the new IBM Ceph Storage and IBM Spectrum Fusion banners will arrive in the first half of 2023, so users will have plenty of time to digest the changes.
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President Biden will visit IBM offices in Poughkeepsie during his trip to New York state on Thursday, the White House said.
Biden would “deliver remarks on creating jobs in the Hudson Valley, lowering costs, and ensuring the future is made in America” at the IBM facility, the White House said in a statement on Tuesday.