By Kim Yoo-chul
International Business Machines (IBM) aims to gain more profit from two business areas that it has identified as its next cash-cows ― cloud and big data.
Kim Won-jong, an IBM Korea vice president, said the company is in a transition period and is branching out into new business territories.
It has been consistent in readjusting its business portfolios by moving away from less-profitable products to higher-margin operations.
"IBM Korea is eyeing remarkable growth in cloud computing and big data revenues. We are approaching leading financial institutions, banks and manufacturers to strengthen strategic business partnerships. IBM is receiving a warm response for those related solutions," said the executive in an interview.
IBM's strategy is to boost mutual collaboration with its target clients, not just to sell its solutions but to build trust with them.
"We've acknowledged security concerns from our clients and understand additional spending goes toward addressing the proliferation of data analytics and cloud computing. IBM is offering packaged solutions and, for the cloud computing business, we are pursuing localized business strategies, meaning that customized solutions … are being provided," said the executive.
Kim declined to comment on this year's revenue target.
IBM Korea has recorded sizable growth in cloud revenues after making hefty investment in development of cloud infrastructure.
IBM Korea has been helping its clients construct cloud computing-related systems.
"IBM wants to be recognized as a total solution provider and that means we are pushing to offer hybrid cloud computing solutions, with private and public solutions being integrated," he said.
Kim said the company always teams up with research personnel to find new business models by actively utilizing IBM patents.
The company's labs help introduce patent-worthy scientific breakthroughs that result in more than $1 billion a year in royalty income, globally.
IBM set a record with 6,809 patents issued in 2013, its 21st consecutive year atop the industry charts in terms of awarded patents.
Open collaboration
The executive said IBM has strong interest in creating a new ecosystem with local small and medium-sized enterprises (SMEs) and startups by opening up its patents.
Stressing "open collaboration," the executive said IBM is sharpening its edge for the Watson supercomputer.
"IBM Korea is developing new solutions focused on retail, travel and banking areas, based on a cloud computing format," Kim said.
Watson uses a system known as "elastic storage" that it released early this month.
The system is characterized as flexible rearrangement of data which puts the most useful data in quickly retrievable storage and places less relevant data into slower storage until it's necessary.
The "elastic storage" mimics human memory, according to IBM officials.
"I have no question that this 'cognitive computing' will get more growth momentum. By using Watson, we are co-developing asset management systems as well as healthcare solutions and call centers based on data given by clients," he said.
The executive said it is being approached by many Korean companies for the adaptation of its Watson system and IBM Korea is in talks to support them.
IBM recently launched cloud-based software designed to enhance collaboration between enterprises and third-party partners and suppliers.
The software is designed to improve management of shared business processes, performance analytics, compliance and data-sharing between organizations and the companies with whom they conduct business.
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| Kim Won-jong IBM Korea vice president |
Kim Won-jong, an IBM Korea vice president, said the company is in a transition period and is branching out into new business territories.
It has been consistent in readjusting its business portfolios by moving away from less-profitable products to higher-margin operations.
"IBM Korea is eyeing remarkable growth in cloud computing and big data revenues. We are approaching leading financial institutions, banks and manufacturers to strengthen strategic business partnerships. IBM is receiving a warm response for those related solutions," said the executive in an interview.
IBM's strategy is to boost mutual collaboration with its target clients, not just to sell its solutions but to build trust with them.
"We've acknowledged security concerns from our clients and understand additional spending goes toward addressing the proliferation of data analytics and cloud computing. IBM is offering packaged solutions and, for the cloud computing business, we are pursuing localized business strategies, meaning that customized solutions … are being provided," said the executive.
Kim declined to comment on this year's revenue target.
IBM Korea has recorded sizable growth in cloud revenues after making hefty investment in development of cloud infrastructure.
IBM Korea has been helping its clients construct cloud computing-related systems.
"IBM wants to be recognized as a total solution provider and that means we are pushing to offer hybrid cloud computing solutions, with private and public solutions being integrated," he said.
Kim said the company always teams up with research personnel to find new business models by actively utilizing IBM patents.
The company's labs help introduce patent-worthy scientific breakthroughs that result in more than $1 billion a year in royalty income, globally.
IBM set a record with 6,809 patents issued in 2013, its 21st consecutive year atop the industry charts in terms of awarded patents.
Open collaboration
The executive said IBM has strong interest in creating a new ecosystem with local small and medium-sized enterprises (SMEs) and startups by opening up its patents.
Stressing "open collaboration," the executive said IBM is sharpening its edge for the Watson supercomputer.
"IBM Korea is developing new solutions focused on retail, travel and banking areas, based on a cloud computing format," Kim said.
Watson uses a system known as "elastic storage" that it released early this month.
The system is characterized as flexible rearrangement of data which puts the most useful data in quickly retrievable storage and places less relevant data into slower storage until it's necessary.
The "elastic storage" mimics human memory, according to IBM officials.
"I have no question that this 'cognitive computing' will get more growth momentum. By using Watson, we are co-developing asset management systems as well as healthcare solutions and call centers based on data given by clients," he said.
The executive said it is being approached by many Korean companies for the adaptation of its Watson system and IBM Korea is in talks to support them.
IBM recently launched cloud-based software designed to enhance collaboration between enterprises and third-party partners and suppliers.
The software is designed to improve management of shared business processes, performance analytics, compliance and data-sharing between organizations and the companies with whom they conduct business.
