1. How IBM’s hardware segment transformed itself to stay in sync with new age tech

How IBM’s hardware segment transformed itself to stay in sync with new age tech

IBM’s hardware segment transforms itself to remain in sync with new age technologies

By: | Published: June 5, 2017 4:26 AM
IBM, IBM news, IBM latest news, IBM new technology, IBM latest technology, IBM hardware segment The shift from the traditional IT to new age technologies is being driven by the changing behaviour of IBM’s customers. (Reuters)

In a fast changing environment where obsolescence of technologies is rising by the day, there is a steady progress towards a model where the old guard remains firm in place but is also extremely adaptable to new age requirements. IBM, the global technology giant, has steadily transformed its hardware business segment into an end-to-end computing platform which not only provides the servers and storage but now comes with an array of software which addresses the new-age requirements of digital technologies. The hardware segment of IBM comprised of four segments: x86 servers, RISC based servers, storage and the mainframes. What has been added now is the entire layer of infrastructure software.

Viswanath Ramaswamy, director, systems, IBM, India, says, “There is a transformation happening. Earlier we were catering to the traditional IT requirements but now there is new generation workloads.”

The advent of the digital age has become a sort of inflection point which has created this new generation workloads surpassing traditional IT itself. “The traditional IT work is there but it is digital which is growing much faster,” says Ramaswamy.

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The shift from the traditional IT to new age technologies is being driven by the changing behaviour of IBM’s customers. Be it banks or telcos, they are now more attuned towards end customer behaviour. It is a similar case in the manufacturing industry where they realise that an ERP is not enough to grow their business, but they also need to understand consumer patterns.

“All these new generation technologies are interfaces with consumers, and clients are focussing on them because any dissatisfaction on this count may see the customer switching over to a competitor,” Ramaswamy says.

These changes have led to an evolution in IBM’s hardware business where, for example, its mainframe technologies embrace the open world, or the storage segment has become more dynamic in adopting flash technology.

Ramaswamy says in the changed paradigm, the new technologies are actually being driven by completely different sources. Earlier, the entire workload of technology in an enterprise rested on the IT department but now requirements are being germinated from different lines of businesses as they receive insights from the end consumer and talk about their requirement.

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