IBM Invests $300 Million In Services Push For Smaller Businesses - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business & Finance

IBM Invests $300 Million In Services Push For Smaller Businesses

Plan calls for working with regional systems integrators to deliver IT services to small and midsize customers.

IBM on Tuesday said it will spend $300 million in the coming months to boost its ability to deliver IT services to small and midsize businesses through regional system integrators in the United States and Europe.

Part of the funds will be used to assign existing IBM business consultants to work with third-party system integrators in various regions, said Jim Corgel, general manager of IBM Global Services' SMB group. Corgel, speaking at IBM's PartnerWorld conference in Las Vegas, said other portions of the funds could be used to acquire companies possessing technologies that would help IBM automate service delivery to SMBs.

"Corio is a great example" of the type of company IBM would consider acquiring to aid in service delivery, Corgel said. IBM bought Corio, an application service provider, in January for $182 million.

Corio's technology and expertise will be enlisted in IBM's new SMB services push, called project Infusion, Corgel said. The plan envisions scenarios under which IT users within SMBs would get access to IBM Global Services' tools and knowledge through their local system integrator. One possible plan calls for the creation of Web portals that would combine offerings--such as training modules--from the systems integrator and IBM Global Services. As an ASP, Corio specializes in delivering software and other tools over the Web.

IBM also is launching IBM Express Managed Services, which includes packaged offerings of application and infrastructure managed services tailored for smaller companies and sold through IBM business partners. Resellers will also be able to sell IBM-based, all-in-one mySAP application packages and related services to SMBs using preconfigured components from IBM.

According to a study released last year by Access Markets International Partners, spending on business software by U.S. SMBs in 2004 grew 14.3%, compared with 4.9% by large companies. IBM is clearly hoping smaller companies' surging interest in IT will carry over to IT services.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Slideshows
IT Careers: Top 10 US Cities for Tech Jobs
Cynthia Harvey, Freelance Journalist, InformationWeek,  1/14/2020
Commentary
Predictions for Cloud Computing in 2020
James Kobielus, Research Director, Futurum,  1/9/2020
News
What's Next: AI and Data Trends for 2020 and Beyond
Jessica Davis, Senior Editor, Enterprise Apps,  12/30/2019
Register for InformationWeek Newsletters
Video
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll