IBM to invest $1.2 billion in cloud services
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International Business Machines (IBM) plans to invest $1.2 billion to expand its cloud services. The computing and technology giant wants to bolster its presence in the next generation of cloud storage and other services. The project includes building 15 state-of-the-art data centres across the world. IBM is having to adapt quickly to move from a predominantly hardware-based company into one providing online services. It has experienced declining revenues for the past six quarters and urgently needs to reverse this trend. An IBM spokesman told reporters: "This is fundamental because this allows us global coverage." He added: "We are continuing to invest in where we think the growth areas are going to be."
Wikipedia says: "Cloud computing is a phrase used to describe a variety of computing concepts that involves a large number of computers connected through a real-time communication network such as the Internet." In reality, "the cloud" is a metaphor for the Internet. Clever marketing has created the concept of the cloud to create more sellable services. Users of cloud services keep their data and software on a server (a huge computer) of the company offering the cloud service. There is no need to download anything or store information on a home or work computer. Wikipedia outlines several deterrents to the widespread adoption of cloud computing, including security, reliability and issues surrounding privacy.
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