IBM takes on Amazon, wades into medium size biz clouds

IBM is about to start extolling the wonder of its cloud to medium-sized companies instead of sticking with its usual larger customers. Big Blue will the harness the power of a network of managed service providers in an effort to start a presence in a market dominated by companies like Amazon and Salesforce.

Beancounters at Gartner say that cloud services will grow nearly 20 per cent this year to $106bn worldwide as firms rush into the fluffy cumuli. But pay-as-you-use services from Amazon and the like are proving quite popular with the smaller firms.

So IBM is going in the same direction. It is using managed service providers (MSPs) to package out its SmartCloud, PureSystems and analytics services in their usual PAYG models. Big Blue's cloud services will go out through around 1,400 local MSPs – including Perimeter, Symmetry, Oxford Networks and PEER 1 Hosting.

"These new initiatives launched by IBM are unfolding new opportunities for our organisation not only to create new business opportunities with clients but also seize the opportunity to expand our global reach," said Craig Gunderson, CEO of Oxford Networks.

"The combination of IBM's technical expertise and focus on helping clients drive innovation with advanced technologies and its marketing engine will enable us to move beyond our traditional client base and reach new markets," he added, in an emailed release from IBM. ®