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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Ideas are crucial for spurring innovations in products and services. One such innovative leader is Heena Purohit, who plays a major role in providing teams with a framework for maturing their ideas into products for customers.
Analytics India Magazine interacted with Purohit, head of product at IBM. She is the product lead at IBM’s internal incubator program, which enables IBMers to bring innovative ideas and solutions to the real world. Purohit founded ‘AI for Her’ — a 501(c)(3) non-profit organisation on a mission to bring more women and gender minorities into AI. By reducing the AI diversity gap, it helps to build AI systems that are fair and unbiased.
“A typical day for me involves working with various venture teams that deal with emerging technologies and advising them on their product strategy and execution. This includes tasks such as designing and helping teams execute experiments to ensure the venture would be a viable business for IBM, coaching teams on product thinking or, if needed, rolling up my sleeves and supporting the teams in building customer collateral, lead customer/user interviews, and support sales execution.”
Transforming ideas into products
Purohit says that no two days are alike at work, especially since each venture team is different and is solving a unique customer problem in a distinct way. “And that’s the most fun part of my job!”
She says, “My program is open for IBMers around the world, providing an opportunity to surface and test the best ideas across IBM. This helps in facilitating a culture of innovation and intrapreneurship within the company, while helping IBM build and launch the next generation of products, faster.” She adds that for many teams submissions are ideas and technologies they’ve been working on for years. Being selected in the program finally gives them the opportunity to put their experiments to work and see if they’re actually viable.
Implementing AI in product management
In her initial years at IBM, Purohit built AI solutions for industrial customers driving the strategy, product management and design to help manufacturing clients. She holds an undergraduate degree in telecommunications engineering from the University of Mumbai, where she built solutions involving IoT data/sensors. She also holds a double-major MBA from the University of Notre Dame. “So during my MBA, I came across a brand-new business that IBM was launching (Watson IoT), I applied and was selected for a product management internship role in the unit.”
Purohit says, like many others, she fell into AI following her interests. “While IoT sensors were a disruptive way to get more data than ever, I felt gravitated towards the part where you analyse the data – from IoT sensors, or other structured and unstructured data – to unlock new insights. I was fascinated by how AI/ML technologies enabled us to do that in new ways.”
She said her AI journey began during this period, where she had the opportunity to launch and scale vertical AI solutions for industrial customers. The experience gave insights into having a firsthand look at the opportunities and challenges that customers are facing in adopting AI across the company. Having worked with some of the most brilliant AI minds at the company, Purohit says that her passion for emerging AI technologies and solving key business problems only grew.
‘You don’t have to be a data scientist to understand or benefit from AI’
Having worked with several customers and mentees to help them adopt AI or get into AI roles, Purohit shares one of her biggest learnings, “You don’t have to be a data scientist to understand or benefit from AI. This is also freeing because as AI technologies get more and more accessible, it helps bring more diverse voices in AI discussions, getting them to help build an AI-powered future.”
More specifically to her experience working on emerging technologies, Heena says that this is a great time to build a product. “To get started, think about all the tasks you do in your personal and professional life. Identify the manual/repetitive/mundane tasks and think if AI can help you Boost that experience. If the answer is yes, try it out. It’s very likely that there’s a no-code AI tool out there for you to prototype this. This way, you’re not only dipping your toes in AI but also gaining the experience in using AI tools, so that you can then move on to solving bigger and better problems with AI.”
Purohit has been on a mission to make AI more accessible and help bring more people into the AI industry. She adds that this has manifested into the decisions made around which products to lead. Outside her current role at IBM, Purohit has spoken at over 20 events on the topic, and been published in over 15 books and articles. The tech leader has actively judged AI solutions at 6 hackathons. “The ‘AI for Her’ content on getting into AI and AI literacy has impacted over 12,000 students. And this feels like just the beginning.”
Find your tribe of cheerleaders and supporters
Purohit shares that across all channels, the biggest takeaways have come from the questions since they provide insight into the pain points that people are facing today. “These challenges often don’t pertain to the technical skills gap but around the mindset shift. And that’s why in most of the sessions I’ve delivered, we end up touching upon Topics such as imposter syndrome, knowing your worth, and finding your tribe of cheerleaders and supporters,” she said.
She credits IBM for providing an incredible network of mentors that inspired and gave her opportunities to grow. “Perfect segway from the mindset shift because I faced that as I moved up in my career trajectory, too. It’s important to acknowledge that one doesn’t get to where they are without the help of others. I’m grateful for the support I’ve received, and it’s also why I feel passionately about paying it forward.”
Purohit was recognised as one of the Top 11 ‘Women AI Leaders’ at RISE 2020 and Datatech Vibe’s 2021 ‘Top Women Leaders In AI To Watch’. She was awarded the University’s Alumni Award in 2019 for her impact on women in technology initiatives. “I feel incredibly thankful for both recognitions and am honoured to be mentioned alongside many of the women I admire. I want to talk about how this happened. At the start of the pandemic, when everyone was in strict lockdown, I missed my break room conversations where I’d catch up with my colleagues and geek out on AI. I raised this on one of my favourite Women in Tech Facebook groups and turns out, many other women missed this, too.”
Purohit says that this led to the establishment of ‘AI for Her’. “This gave me the confidence to take this further and we’re now a 501c3 nonprofit on a mission to reduce the gender gap in the AI industry today and amplify the message that everyone can get into AI. We’ve been brewing some even more exciting things this year and looking forward to the launch!”
1. Favourite thing in the ML/AI industry today & why? I’m incredibly excited about foundation models. Having tested various foundation models, I can attest that not only are they better than anything else I’ve used, but also they’re equally flawed. So, while I know we have a way to go before foundation models become usable, I’m excited by how they could transform many areas of our lives today
2. Top three apps you frequently use: YouTube, Elevate, and Reddit
3. Favourite book on AI: Weapons of Math Destruction
4. Favourite podcast in AI and ML: I prefer non-AI podcasts to bring in more diversity to my day-to-day life. I love Exponent (Ben Thomson’s podcast on tech business analysis) and Acquired (Great storytelling and startup analysis)
5. What would you have been doing if you weren’t a Product Head? I would certainly still be in tech. But as a consultant or a Product Owner
6. How do you define your leadership style? I strive to lead with empathy. Since the pandemic, this has become more important to me than ever
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 get 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.
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.
The MarketWatch News Department was not involved in the creation of this content.
Oct 14, 2022 (The Expresswire) -- Global “Cloud-based Load Test Market” research report provides a comprehensive overview, industry shares, and growth opportunities of market research includes historical and forecast market size covering different segments like product type, application, key dynamics, drivers, restraints and key regions and countries. The Cloud-based Load Test market report also presents the market competition landscape and a corresponding detailed analysis of the leading players in the market.
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As the global economy mends, the growth of Cloud-based Load Test will have significant change from previous year. The global market size will reach significant USD in 2028, growing at a CAGR over the analysis period.
The Cloud-based Load Test Market report also splits the market by region: Americas, United States, Canada, Mexico, Brazil, APAC, China, Japan, Korea, Southeast Asia, India, Australia, Europe, Germany, France, UK, Italy, Russia, Middle East and Africa, Egypt, South Africa, Israel, Turkey, GCC Countries.
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Cloud-based Load Test Market Segment by Manufacturers, this report covers:● Oracle Corporation ● Cognizant Technology Solutions Corporation ● Capgemini SE ● IBM Corporation ● Akamai Technologies Inc. ● LoadStorm (CustomerCentrix LLC) ● Wipro Limited ● Microsoft Corporation ● BlazeMeter LLC (Broadcom Inc.) ● SmartBear Software Inc. ● Invensis Technologies ● Cigniti Technologies ● Cygnet Infotech ● Micro Focus International
For the competitive landscape, the report also introduces players in the industry from the perspective of the market share, concentration ratio, etc., and describes the leading companies in detail, with which the readers can get a better idea of their competitors and acquire an in-depth understanding of the competitive situation.
"Final Report will add the analysis of the impact of COVID-19 on this industry."
Segmentation by type: breakdown data from 2017 to 2022● Managed Service ● Professional Service
Segmentation by application: breakdown data from 2017 to 2022● Small and Medium Enterprise ● Large Enterprise
Geographical Regions covered in Cloud-based Load Test market report are:● North America (U.S. and Canada) Market size, Y-O-Y growth, Market Players Analysis and Opportunity Outlook ● Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth and Market Players Analysis and Opportunity Outlook ● Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands and Luxembourg, NORDIC (Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y Growth Market Players Analyse and Opportunity Outlook ● Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth and Market Players Analysis and Opportunity Outlook ● Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y Growth Market Players Analysis and Opportunity Outlook
Key Reasons to Purchase:● To gain insightful analyses of the market and have a comprehensive understanding of the global market and its commercial landscape. ● Assess the production processes, major issues, and solutions to mitigate the development risk. ● To understand the most affecting driving and restraining forces in the Cloud-based Load Test market and its impact in the global market. ● Learn about the market strategies that are being adopted by leading respective organizations. ● To understand the outlook and prospects for the market.
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Detailed TOC of Global Cloud-based Load Test Market Growth (Status and Outlook) 2022-2028
1 Scope of the Report
1.1 Market Introduction
1.2 Years Considered
1.3 Research Objectives
1.4 Market Research Methodology
1.5 Research Process and Data Source
1.6 Economic Indicators
1.7 Currency Considered
2 Cloud-based Load Test Market Executive Summary
2.1 World Market Overview
2.1.1 Global Market Size 2017-2028
2.1.2 Market Size CAGR by Region 2017 VS 2022 VS 2028
2.2 Cloud-based Load Test Segment by Type
2.2.1 Type 1
2.2.2 Type 2
2.3 Cloud-based Load Test Market Size by Type
2.3.1 Cloud-based Load Test Market Size CAGR by Type (2017 VS 2022 VS 2028)
2.3.2 Global Market Size Market Share by Type (2017-2022)
2.4 Cloud-based Load Test Segment by Application
2.4.1 Application 1
2.4.2 Application 2
2.5 Cloud-based Load Test Market Size by Application
2.5.1 Cloud-based Load Test Market Size CAGR by Application (2017 VS 2022 VS 2028)
2.5.2 Global Cloud-based Load Test Market Size Market Share by Application (2017-2022)
3 Cloud-based Load Test Market Size by Player
3.1 Market Size Market Share by Players
3.1.1 Global Revenue by Players (2020-2022)
3.1.2 Global Revenue Market Share by Players (2020-2022)
3.2 Global Key Players Head office and Products Offered
3.3 Market Concentration Rate Analysis
3.3.1 Competition Landscape Analysis
3.3.2 Concentration Ratio (CR3, CR5 and CR10) and (2020-2022)
3.4 New Products and Potential Entrants
3.5 Mergers and Acquisitions, Expansion
4 Cloud-based Load Test by Regions
4.1 Cloud-based Load Test Market Size by Regions (2017-2022)
4.2 Americas Cloud-based Load Test Market Size Growth (2017-2022)
4.3 APAC Cloud-based Load Test Market Size Growth (2017-2022)
4.4 Europe Cloud-based Load Test Market Size Growth (2017-2022)
4.5 Middle East and Africa Cloud-based Load Test Market Size Growth (2017-2022)
11 Key Players Analysis
11.1 Manufacture 1
11.1.1 Manufacture 1 Company Information
11.1.2 Manufacture 1 Cloud-based Load Test Product Offered
11.1.3 Manufacture 1 Cloud-based Load Test Revenue, Gross Margin and Market Share (2020-2022)
11.1.4 Manufacture 1 Main Business Overview
11.1.5 Manufacture 1 Latest Developments
11.2 Manufacture 2
11.2.1 Manufacture 2 Company Information
11.2.2 Manufacture 2 Cloud-based Load Test Product Offered
11.2.3 Manufacture 2 Cloud-based Load Test Revenue, Gross Margin and Market Share (2020-2022)
11.2.4 Manufacture 2 Main Business Overview
11.2.5 Manufacture 2 Latest Developments
11.3 Manufacture 3
11.3.1 Manufacture 3 Company Information
11.3.2 Manufacture 3 Product Offered
11.3.3 Manufacture 3 Revenue, Gross Margin and Market Share (2020-2022)
11.3.4 Manufacture 3 Main Business Overview
11.3.5 Manufacture 3 Latest Developments
12 Research Findings and Conclusion
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‘I want to increase the number of clients, also, not just wallet share,’ IBM CEO Arvind Krishna says at The Channel Company’s Best of Breed conference in Atlanta. ‘That means that we need your help. We are not going to go there directly at all.’
Under Arvind Krishna’s watch, IBM has decreased the number of direct customers from about 5,000 in 2020 to about 400, the CEO told a crowd Monday. And the tech giant plans to leave potential new clients to partners.
“I want to increase the number of clients, also, not just wallet share,” Krishna said. “That means that we need your help. We are not going to go there directly at all.”
The CEO of Armonk, N.Y.-based IBM discussed his company’s investment in partners, the integration of subsidiary Red Hat, encouraged partners to raise their prices given the inflationary economic environment and even weighed in on chipmaker Broadcom‘s pending acquisition of cloud vendor VMware at CRN parent The Channel Company’s 2022 XChange Best of Breed (BoB) conference in Atlanta.
Krishna was on stage responding to questions from The Channel Company Founding Partner Robert Faletra and CRN Executive Editor of News Steven Burke.
[RELATED: IBM Assimilates Red Hat Storage Technology Into Own Storage Business]
Mark Wyllie, CEO of Boca Raton, Fla.-based IBM partner Flagship Solutions Group, told CRN in an interview that he’s glad to hear IBM plans to continue integrating different parts of the Red Hat business.
Earlier this month, IBM announced that it had absorbed storage technology and teams from its Red Hat business to combine them with IBM’s own storage business unit as a way to help clients take advantage of the two without requiring extra integration or having to deal with multiple sales teams.
Wyllie wants to see IBM further integrate Red Hat services into its portfolio to help partners push the services out to existing IBM customers.
“I think that’d be a benefit to us and IBM,” Wyllie said.
Red Hat’s autonomy within IBM has been essential to its position as an open source software vendor. Krishna clarified Monday that the Red Hat brand will stay in areas where it has a stronger brand than IBM. For storage, “maybe we already have a storage channel, which Red Hat kind of didn’t,” Krishna said.
He said IBM gave Red Hat more security and management capabilities after its acquisition in 2019. Partners can expect more integration between Red Hat and IBM in areas involving Linux.
“So if you can take maybe 50,000 Linux servers and consolidate them using OpenShift on LinuxOne, maybe that‘s a play to be made,” Krishna said. “There’s a few clients who have woken up to that and are doing it right now. So I think that’s going to be a really big play you’re going to see.”
During his talk, Krishna encouraged partners to explore more opportunities in IBM’s artificial intelligence operations (AIOps) offerings, including Turbonomic, Watson AIOps and Instana.
Customers will continue to spend on automation tools, he said.
“The ability to go into an enterprise and tell them, ‘Look, we can do things a lot more automated. We can take some cost out. We can do monitoring, and eventually go closed loop on AI’ – which I don‘t think is happening yet,” Krishna said. “I think is a massive opportunity given the current labor market.”
IBM’s security offerings, as well as Red Hat and containerization offerings, are also areas for partners to invest in, Krishna said.
As for Broadcom and VMware, Krishna said that VMware remains an important partner for his company. And as long as VMware keeps investing in its products, it should remain “a strong franchise.”
“I think it’ll come down to what is going to happen in 2023 and 2024,” Krishna said. “As long as they keep innovating on the products, they keep giving more function back to their clients – it’s a strong franchise. That falls away, then that‘s a different question. But I think the virtualization world likes those products. Now it’s up to them to keep innovating.”
Krishna also told partners they should raise prices to cover the growing cost of labor with such high inflation in the U.S.
“From our conversations with clients, I would tell you that nobody loves it, but they all understand,” he said. “Because most of our clients are doing the same out to their clients. … Pricing power comes down to something simple. Is the product highly valuable and is it sticky? … In a world of fewer skills, if you have the skills, you can price those skills.”
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 supplier 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.
IBM announced it will add Red Hat storage product roadmaps and Red Hat associate teams to the IBM Storage business unit, bringing consistent application and data storage across on-premises infrastructure and cloud.
With the move, IBM will integrate the storage technologies from Red Hat OpenShift Data Foundation (ODF) as the foundation for IBM Spectrum Fusion. This combines IBM and Red Hat's container storage technologies for data services and helps accelerate IBM's capabilities in the burgeoning Kubernetes platform market.
In addition, IBM intends to offer new Ceph solutions delivering a unified and software defined storage platform that bridges the architectural divide between the data center and cloud providers. This further advances IBM's leadership in the software defined storage and Kubernetes platform markets, according to the vendor.
"Red Hat and IBM have been working closely for many years, and today's announcement enhances our partnership and streamlines our portfolios," said Denis Kennelly, general manager of IBM Storage, IBM Systems. "By bringing together the teams and integrating our products under one roof, we are accelerating the IBM's hybrid cloud storage strategy while maintaining commitments to Red Hat customers and the open-source community."
Benefits of the software defined portfolio available from IBM will include:
"Red Hat and IBM have a shared belief in the mission of hybrid cloud-native storage and its potential to help customers transform their applications and data," said Joe Fernandes, vice president of hybrid platforms, Red Hat. "With IBM Storage taking stewardship of Red Hat Ceph Storage and OpenShift Data Foundation, IBM will help accelerate open-source storage innovation and expand the market opportunity beyond what each of us could deliver on our own. We believe this is a clear win for customers who can gain a more comprehensive platform with new hybrid cloud-native storage capabilities."
Under the agreement between IBM and Red Hat, IBM will assume Premier Sponsorship of the Ceph Foundation, whose members collaborate to drive innovation, development, marketing, and community events for the Ceph open-source project.
IBM Ceph and Red Hat OpenShift Data Foundation will remain 100% open source and will continue to follow an upstream-first model, reinforcing IBM's commitment to these vital communities, according to the company.
Red Hat and IBM intend to complete the transition by January 1, 2023, which will involve the transfer of storage roadmaps and Red Hat associates to the IBM Storage business unit.
Following this date, Red Hat OpenShift Platform Plus will continue to include OpenShift Data Foundation, sold by Red Hat and its partners.
Additionally, Red Hat OpenStack customers will still be able to buy Red Hat Ceph Storage from Red Hat and its partners. Red Hat OpenShift and Red Hat OpenStack customers with existing subscriptions will be able to maintain and grow their storage footprints as needed, with no change in their Red Hat relationship.
Forthcoming IBM Ceph and IBM Spectrum Fusion storage solutions based on Ceph are expected to ship beginning in the first half of 2023.
For more information about this news, visit www.ibm.com.