IBM plans

IBM plans to dedicate itself to hybrid cloud, AI, quantum computing, and mainframe technologies,
and is breaking out its $19B Managed Infrastructure Services group in order to do so.

IBM doesn’t want any distractions on the road to becoming a prodigious hybrid-cloud player, and
today it eliminated one of those diversions by spinning off the $19 billion Managed Infrastructure
Services unit of its Global Technology Services division.

The move creates an as-yet-unnamed firm, tentatively dubbed “NewCo,” which won’t actually be
created until 2021 but will quickly be a big provider of managed infrastructure services. It will
employ about 90,000 staffers, have more than 4,600 clients in 115 countries—including more than
75% of the Fortune 100—have a backlog of $60 billion in orders, and more than twice the scale
of its nearest competitor, IBM stated. That would include Accenture, Fujitsu and Huawei.

“Client buying needs for application and infrastructure services are diverging, while adoption of
our hybrid cloud platform is accelerating. Now is the right time to create two market-leading
companies focused on what they do best,” Arvind Krishna, IBM Chief Executive Officer said in a
statement. “IBM is laser-focused on the $1 trillion hybrid-cloud opportunity.”

Arvin, who took the CEO reigns from Virginia Rometty in April, likened the move to Big Blue’s
previous large divestitures such as its decision to get rid of its networking business in the 90s
and PCs in the 2000s to focus on bigger things.

In this case that bigger thing is hybrid-cloud computing.

“Hybrid cloud and AI are swiftly becoming the locus of commerce, transactions, and over time,
of computing itself. Our decision is also the logical next step in our pursuit of the $1 trillion hybrid
cloud opportunity,” Arvin stated in a blog about the move.

“Today, services account for more than 60% of our revenue. When NewCo becomes an
independent company, our software and solutions portfolio will account for the majority of our
revenue,” he stated. “This represents a significant shift in our business model.”

The acquisition of Red Hat for $34 billion in 2019 let IBM build its hybrid-cloud platform that
suspports computing on-premises and in private- and public-cloud environments. “This was the
first major step to seize this opportunity and underpins everything that has followed,” Arvin
stated.

IBM has made a number of key exchanges with its Red Hat technology. The effort began with
IBM bundling Red Hat’s Kubernetes-based OpenShift Container Platform with more than 100
1. Service mesh will be increased more
Due to the introduction of Amazon Web Services’ App Mesh as well as the open source Istio from
Google, last year we were witnessed the release of the service mesh. This technology is expected to
develop more due to the fact that companies are now looking for methods to control the complication
and the fluctuating traffic flow, have approach to policy enforcement as well as connect telemetry data
through micro services into a common management location.

According to the director from NGINX, when it comes to companies with large scale, intricate apps, a
service mesh is considered to be an effective method. However, there is still a lot of renovation and
even myth for this technology.

It is also claimed that time will deliver the answer to the question how the technology would improve in
the future while there are a lot of opportunities for innovation. Maybe in the future, the technology will be
the major part for all runtime platforms.

Also, it is guessed that there will be new approaches which are more effective than just developing
proxy patterns. These solutions will provide users with more efficient performance while there is a need
for lower resource usage. At this time, we still do not know how the technology would stabilize in the
future as well as which company will be on top of the service vendors.

2. About application networks

Forrester has mentioned the term ‘integrated enterprise application network’ long time ago; however,
until now do the providers start to apply the idea into reality.

Such app leaders as SalesForce, Workday, SAP and Oracle are creating their own platforms to make
use of new development tools as well as deployment options. Their major aim is to enter some specific
industries which are their target to improve the adoption process. Software as a Service has become
the development bases which are expected to get outstanding results in this year.

According to the director of product marketing and solutions at the Software as a Service provider
named Twilio, application forms will become a relatively new method for developers to take advantage
and personalize their enterprise software.

Such app platforms as Software as a Service app will be used similarly as a solution based on
premises. In the past, when they utilized Software as a Service, they were not able to customize to
adapt to their business requirements. Thanks to these application platforms, developers can receive
benefits from the low price of cloud but with a high scalability.

3. Serverless momentum
At an event organized by Amazon Web Services last year, we were talked about serverless computing
technology as well as the number of methods for developers to adopt this new idea.

One of the methods is Firecracker, which is an open source virtual machine used to take control over
micro virtual machines. Another one is Ruby used to support Lambada is Amazon Web Services tool kit