Feeds

IBM to shutter SmartCloud, move customers to SoftLayer

Migrations due by January 31st, 2014, in-territory clouds to stay

Beginner's guide to SSL certificates

IBM will close its SmartCloud Enterprise service and force customers to migrate to its recently-acquired SoftLayer cloud.

News of the migration leaked today when Gartner veep Lydia Leong emitted the following Tweet:

Another analyst, Constellation Research's Holger Mueller, has told The Reg IBM briefed him on the closure, but first popped out this Tweet.

We naturally felt those emissions worthy of followup and made IBM aware of our desire for a swift comment.

IBM's acceded to our request, offering the following statement it is graciously allowing us to attribute to "An IBM spokesperson":

“IBM can confirm that clients using its public cloud platform will be transitioned to the Softlayer (an IBM company) public cloud platform, providing clients with a higher performing public cloud solution with advanced functionality.

IBM will continue to provide clients with an onshore, managed private cloud platform serviced out of Sydney, Australia.”

The Australia reference is there because this story was written in The Reg's Sydney office. But as the original tweets came from US-based folks we'll take it to mean all locales that have an IBM cloud will keep it.

SmartCloud Enterprise (SCE) is IBM's elastic infrastructure-as-a service offering. Introduced in 2012, SCE looked certain for change when IBM acquired bare metal cloudifier SoftLayer earlier this year. The nature of that change was flagged couple of weeks back when Big Blue announced it would cross-pollinate SoftLayer with its existing cloud kit. That position wobbled a bit: in this September yarn IBM told us SoftLayer would be front and centre in its future cloudy efforts.

That's clearly now come to pass, with IBM deciding to junk its own cloudy efforts and run with SoftLayer instead.

The decision could well be tied to Big Blue's failure to secure a contract with the CIA. Without a colossal customer, it may have made little sense to keep going with its own offering. Consolidating to a single cloud doubtless means lower spending, always a good thing.

Saving cash will be important if SoftLayer is to succeed: as we noted in June, the service is yet to scale out massively and lacks the support of a consumer cloud offering that makes that easier and more affordable.

Mueller, however, feels the move won't be bad for SmartCloud customers, according to this Tweet.

Whatever you think of Mueller's opinion, the closure is embarrassing for IBM and scary for others. Cloud is supposedly today's hottest enterprise IT market. That even mighty IBM can't make a go of it bespeaks stormy weather on the horizon. ®

Thanks to Jack Clark for helping out with this story.

Security for virtualized datacentres

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
AWS pulls desktop-as-a-service from the PC
Support for PCoIP protocol means zero clients can run cloudy desktops
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.