SoftLayer Provides IBM a Lift: Can It Hoist Watson and Chip Bets?

July 14, 2014

I read “SoftLayer Cloud Business Thriving Inside IBM.” Thrive is not the word I would use to describe how iPhrase and Vivisimo have fared. A number of IBM acquisitions have just disappeared into the tummy of the gentle giant, Big Blue. Here’s how the “real” news outfit InformationWeek views the SoftLayer information:

Over the last 12 months, SoftLayer has gained 6,000 new customers. IBM purchased SoftLayer for $2 billion in July 2013. Kandis says SoftLayer’s customer base was composed primarily of small and midsized companies, with some verging on becoming much larger companies. The thing they had in common was they did not have big IT departments, but were looking to expand infrastructure rapidly, Kandis told InformationWeek.

There are some questions.

  1. Will SoftLayer be able to compete with the WalMart-like tactics of Amazon, Google, and Microsoft for cloud happiness?
  2. Will SoftLayer deploy a version of Watson that makes sense to potential licensees? (Recipes for Bon Appétit do not count. Sorry.)
  3. Will SoftLayer pump out enough cash to cover the money IBM wants to invest in next generation computing chips?

My view is that SoftLayer may not be up to the task. Amazon can cut prices quickly. Google, when it gets focused, is still sprightly, just not as zippy as it was in the 2002-2006 era. Microsoft may surprise even the anti Redmond contingent. There is a new, although somewhat muddled, CEO after all.

But SoftLayer has to content with bureaucracy, wild and crazy marketing, and the IBMness of its new work environment. The IDC “experts” don’t trouble themselves with some of the realities I notice. That’s for the best. More sophisticated analyses may shine in comparison.

One plus for the write up, was a reference to Watson as a “general purpose big data analytical engine.” That’s an improvement over a recipe generation system or a sluggish medical diagnostic system. Progress.

Stephen E Arnold, July 14, 2014

Comments

One Response to “SoftLayer Provides IBM a Lift: Can It Hoist Watson and Chip Bets?”

  1. Shivanand on July 15th, 2014 2:04 am

    Softlayer has got about 22000 customers. While on the way to acquire so many customers, Softlayer has learnt enough of WalMart-like tactics of Amazon, Google, and Microsoft for cloud happiness. This gives me the confidence that Softlayer will run as fast and long as the biggest in the industry could.

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