Short answer is Yes.
3% of all workloads is in the cloud? That sounds like a tiny number.
Considering how every company and vendor in the world talks about cloud. You’d expect it to be higher?
I quizzed a few people on this, most guessed it was between 25-30%.
If you breakdown the 3%, AWS has the obvious lead.:
- 47% AWS
- 15% Microsoft
- 7% Alibaba
- 4% Google.
- 2% IBM
IBM’s split could change the cloud landscape
Last weeks news that IBM would split into IBM and NewCo by the end of 2021 was an interesting one.
From the official statement. IBM “will focus on its open hybrid cloud platform, which represents a $1 trillion market opportunity”. while NewCo “will immediately be the world’s leading managed infrastructure services provider.”
IBM will keep the high margin ‘cloud’ and digital work. NewCo will get managed infrastructure and associated services.
Simple.
’Hybrid cloud’ is the word here
This distinction means IBM will keep its mainframe business alongside hardware sales. Things that others wouldn’t consider cloud might be re-classified by Big Blue.
As my mate Larry ‘Michael Mitchell‘ says, ‘If you can’t exclusively maintain it with a green screen terminal then what even is the point?’
To put this in perspective
While not a great deal of workloads are in the cloud today they are higher margin for the cloud providers.
2% of all cloud lets IBM predict they will be a $59bn company post split.
75% of the fortune 100 use IBM’s on premise infrastructure, NewCo will be only a $19bn revenue company.
That tells you everything you need to know about the margins in the cloud.
In the next 24 months cloud is predicted to grow from 3% to 20%, expect IBM to responsible for a large chunk of that growth!
Thomas
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