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Ibm and the transformation of corporate design, by michael turri | april 02, 2024.

Until the arrival of Elliot Noyes as IBM consulting director of design, IBM’s many office products were a confusion of styles: from 1930s-era punched card equipment—complete with steel Queen Anne legs—to room sized computers inflected with mid-century styling, festooned with tiny signal lamps. As IBM consolidated its various product lines in the early 1960s, most importantly with the 1964 System/360 mainframe, it also consolidated its corporate style: Noyes simplified IBM’s design vernacular to represent clean typography, a minimalist aesthetic, unified branding and office equipment and computers that were intuitive and easy to use. Along with the corporate overhaul by Noyes and his associates, husband and wife team Charles and Ray Eames also worked closely with IBM to re-imagine the company for the 20th century. While Elliot Noyes was an industrial designer who focused on corporate design and branding, the Eameses were renowned for their contributions to furniture design, architecture, and multimedia productions.

Both the Eameses and Noyes shared a commitment to modernist design principles, including functionality, simplicity, and human-centered design. They believed in creating designs that were not only aesthetically pleasing but also practical and user-friendly.

The Eames Office/IBM Partnership

The Office of Charles and Ray Eames is among the most important firms in the history of design. Their 40-year career spanned architecture, furniture, exhibition design, film, graphics, books, toys, art and more.

Charles Eames was initially thrust into prominence by architect/designer/curator Eliot Noyes in 1940 when Charles and fellow Cranbrook Academy of Art faculty member Eero Saarinen won the 1940 MoMA Competition for Organic Design in Home Furnishings using the molded plywood manufacturing processes that the Eameses later perfected. It is for this furniture and the processes invented to manufacture it that the Eameses are perhaps most famous.

Although The Eameses designed some of the most successful furniture pieces of all time for Herman Miller and continued to innovate in this area throughout their career, their aperture opened significantly in the early 1950s. At this time, Charles and Ray began to explore communications theory and the power of film and multimedia exhibitions to transmit ideas, concepts and emotions.

A Communications Primer

During the time The Eames Office was cultivating their interest in communications, data processing and computing were still essentially new phenomena; largely the domain of governments and large corporations. Indeed, the implications of this technology were only beginning to enter popular culture. IBM was the dominant force in early computing in America, a subject that was at best misunderstood, if not somewhat feared by the general public.

1960s Vari-Vue “3D” Lenticular Postcard featuring the IBM 1440.

There was a clear opportunity for IBM to shape public opinion around computing technology in 1956 when newly installed CEO Thomas Watson Jr. hired Eliot Noyes to develop the company’s first corporatewide design initiative. It is impossible to overstate the impact of this comprehensive design program on modern corporate branding practice. Indeed, it is the benchmark by which all others might be judged.

Industrial Design Magazine , 1957.

In March 1957, Industrial Design Magazine noted: “Not long ago, in February, 1956, architect and industrial designer Eliot Noyes was asked by IBM to become Consultant Director of Design, and since his appointment he has led the company into an ambitious and unusual program to coordinate and upgrade design across the board, across every aspect of the company's vast operations. This extends from the IBM trademark, through packaging, graphics, exhibitions, interiors and interior furnishings, such as the new Paul Rand drapery, to the business machines themselves and the buildings of the company.”

IBM Carbon Paper Packaging, 1950s, Paul Rand.

Noyes, in turn, hired a cadre of design luminaries including Paul Rand, George Nelson, Edgar Kaufmann, Eero Saarinen and The Eames Office to help not only remake IBM’s image, but to root the technology juggernaut in the fertile soil of Design and influence America’s perception of the societal value of computing technology.

The Eames Office, at the request of Eliot Noyes, produced an animated film for IBM, The Information Machine: Creative Man and the Data Processor , shown at the Noyes-designed IBM pavilion at the 1958 Brussels World Fair. This, and many subsequent works, appear prophetic as we tumble headlong into a new AI computing paradigm.

The Information Machine , 1958, The Eames Office.

Over the next 20 years, The Eames Office created dozens of exhibitions, films, books and experiences for IBM, most of which positioned computers as a natural extension of human reasoning and a tool with unparalleled potential to improve our world.

Some of this work, like the IBM pavilion for the 1964 NY World’s Fair, was seen by millions of people. Yet, surprisingly, much of the work produced under this partnership remains largely obscure.

Which is precisely why collecting it was so much fun!

IBM at the Fair , 1965, The Eames Office.

The Collection

The collection consists of several hundred artifacts from the 1950s–1970s, all of which the author acquired in the first decade of the new millenium. Originally exhibited at the LUNAR offices in Palo Alto in Spring 2011, much of the collection is now archived at the Computer History Museum. It includes ephemera from small and large-scale exhibitions, including Mathematica: A World of Numbers...and Beyond and the landmark IBM pavilion at the 1964-1965 New York World’s Fair in Flushing Meadows.

Exhibition invitation designed by Laura Martini and the author, punched at the Computer History Museum, 2011.

In the collection are all manner of Eames Office, Paul Rand and IBM staff designed ephemera including original brochures and annual reports, press kits and photographs, slides and postcards, packaging, magazine articles, and even a Cartier-produced trophy from the 1964/5 New York World’s Fair.

IBM Fair Brochure, 1964, Paul Rand.

Charles and Ray Eames pioneered a deeply human approach to design which, although evident in all of their work, was particularly powerful in their IBM projects. Their clear communication of technology's role in society, through myriad IBM-sponsored exhibitions, short films and books, became the reference for a new form of corporate design and citizenship. Their work presents a finely integrated model that is as relevant today as it was 70 years ago.

These artifacts trace the massive impact the IBM design program had on American public perception of mathematics, science and computing technology. Critical examination and documentation of this largely overlooked partnership between Eliot Noyes, Paul Rand, George Nelson, Eero Saarinen, Edgar Kaufmann and The Eames Office is a vehicle for remembering not only the historical precedents that link design and technology, but also a potent case study detailing how the human centered design process can be used to fundamentally shift attitudes and the human experience.

Main Image: The IBM pavilion at the 1964 New York World's Fair.

About the author.

Michael Turri works as an experience design, brand and marketing consultant in Paris. Turri donated his archive of IBM design-related artifacts to the Computer History Museum in 2023 to ensure their long-term preservation. Connect with him on LinkedIn .

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Up 17% this year, why is ibm stock outperforming.

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IBM logo is seen on the office building in Krakow, Poland on December 1, 2020. (Photo by Jakub ... [+] Porzycki/NurPhoto via Getty Images)

Computing behemoth IBM IBM stock has fared well this year, rising by over 17% year-to-date, outperforming the Nasdaq-100 which remains up by 10% over the same period. IBM is benefiting from surging interest in artificial intelligence and a potential rebound in IT spending over 2024 after some weakness following the Covid-19 pandemic. IBM’s Q4 2023 results were also stronger than expected. Revenue rose 4% year-over-year to $17.4 billion, while earnings stood at about $3.87 per share.

IBM has been developing artificial intelligence technology for decades now. While the company’s products have been in the spotlight in the past, including when its supercomputer Watson defeated Jeopardy champion Ken Jennings over a decade ago, AI hasn’t really been a big revenue driver for the company. However, this looks set to change, following the surge in interest in generative AI tools following the success of OpenAI’s ChatGPT chatbot. IBM has been looking to capitalize on the rising demand for AI in the enterprise space. Last year, it introduced Watsonx, its core platform that enables enterprise clients to train, tune, validate, and deploy customized AI models for their businesses. IBM has said that client demand for AI solutions has been accelerating, with its book of business for Watsonx and generative AI roughly doubling from Q3 to Q4.

IBM’s other software products are also gaining traction. Over 2023, software sales grew by 5% year-over-year, driven by higher sales of Red Hat RHT products and Data & AI solutions. Red Hat, which was acquired in 2019, has been a key growth driver for IBM, given its large portfolio of open-source technology, its hybrid cloud platform, and its large developer community. IBM’s consulting business has also been doing well, despite a tough market for IT spending. Over 2023 consulting sales rose by 6% year-over-year in constant currency terms, with IBM gaining market share. IBM has also been focused on cutting costs, indicating that it would reduce costs in 2024 by $3 billion, up from an estimate of $2 billion previously via headcount reduction and greater automation.

Looking at a slightly longer period, IBM stock has seen extremely strong gains of 50% from levels of $125 in early January 2021 to around $190 now, vs. an increase of about 40% for the S&P 500 over this roughly 3-year period. IBM is one of a handful of stocks that have increased their value in each of the last 3 years, but that still wasn’t enough for it to consistently beat the market. Returns for the stock were 6% in 2021, 5% in 2022, and 16% in 2023. In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 24% in 2023 - indicating that IBM underperformed the S&P in 2021 and 2023. In fact, consistently beating the S&P 500 - in good times and bad - has been difficult over recent years for individual stocks; for heavyweights in the Information Technology sector including MSFT, AAPL, and NVDA, and even for the mega-cap stars GOOG, TSLA, and AMZN. In contrast, the Trefis High Quality Portfolio , with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics . Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could IBM face a similar situation as it did in 2021 and 2023 and underperform the S&P over the next 12 months - or will it see a strong jump?

At the current market price of about $191 per share, IBM stock trades at 20x consensus 2024 earnings, which is elevated, compared to historical levels. While IBM’s business is increasingly focused on hot areas such as cloud computing, AI, and automation, growth is likely to remain muted in the near term, with the consensus pointing to low double-digit revenue growth for 2024 and 2025. We value IBM stock at $177 per share, which is slightly below the current market price. See our analysis IBM Valuation : Expensive or Cheap for more details on what’s driving our price estimate for IBM. Also, check out the analysis of IBM Revenue for more details on how IBM revenues are trending.

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Cloud computing is the on-demand access of computing resources—physical servers or virtual servers, data storage, networking capabilities, application development tools, software, AI-powered analytic tools and more—over the internet with pay-per-use pricing.

The cloud computing model offers customers greater flexibility and scalability compared to traditional on-premises infrastructure.

Cloud computing plays a pivotal role in our everyday lives, whether accessing a cloud application like Google Gmail, streaming a movie on Netflix or playing a cloud-hosted video game.

Cloud computing has also become indispensable in business settings, from small startups to global enterprises. Its many business applications include enabling remote work by making data and applications accessible from anywhere, creating the framework for seamless omnichannel customer engagement and providing the vast computing power and other resources needed to take advantage of cutting-edge technologies like generative AI and quantum computing . 

A cloud services provider (CSP) manages cloud-based technology services hosted at a remote data center and typically makes these resources available for a pay-as-you-go or monthly subscription fee.

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Compared to traditional on-premises IT that involves a company owning and maintaining physical data centers and servers to access computing power, data storage and other resources (and depending on the cloud services you select), cloud computing offers many benefits, including the following:

Cloud computing lets you offload some or all of the expense and effort of purchasing, installing, configuring and managing mainframe computers and other on-premises infrastructure. You pay only for cloud-based infrastructure and other computing resources as you use them. 

With cloud computing, your organization can use enterprise applications in minutes instead of waiting weeks or months for IT to respond to a request, purchase and configure supporting hardware and install software. This feature empowers users—specifically DevOps and other development teams—to help leverage cloud-based software and support infrastructure.

Cloud computing provides elasticity and self-service provisioning, so instead of purchasing excess capacity that sits unused during slow periods, you can scale capacity up and down in response to spikes and dips in traffic. You can also use your cloud provider’s global network to spread your applications closer to users worldwide.

Cloud computing enables organizations to use various technologies and the most up-to-date innovations to gain a competitive edge. For instance, in retail, banking and other customer-facing industries, generative AI-powered virtual assistants deployed over the cloud can deliver better customer response time and free up teams to focus on higher-level work. In manufacturing, teams can collaborate and use cloud-based software to monitor real-time data across logistics and supply chain processes.

The origins of cloud computing technology go back to the early 1960s when  Dr. Joseph Carl Robnett Licklider  (link resides outside ibm.com), an American computer scientist and psychologist known as the "father of cloud computing", introduced the earliest ideas of global networking in a series of memos discussing an Intergalactic Computer Network. However, it wasn’t until the early 2000s that modern cloud infrastructure for business emerged.

In 2002, Amazon Web Services started cloud-based storage and computing services. In 2006, it introduced Elastic Compute Cloud (EC2), an offering that allowed users to rent virtual computers to run their applications. That same year, Google introduced the Google Apps suite (now called Google Workspace), a collection of SaaS productivity applications. In 2009, Microsoft started its first SaaS application, Microsoft Office 2011. Today,  Gartner predicts  worldwide end-user spending on the public cloud will total USD 679 billion and is projected to exceed USD 1 trillion in 2027 (link resides outside ibm.com).

The following are a few of the most integral components of today’s modern cloud computing architecture.

CSPs own and operate remote data centers that house physical or bare metal servers , cloud storage systems and other physical hardware that create the underlying infrastructure and provide the physical foundation for cloud computing.

In cloud computing, high-speed networking connections are crucial. Typically, an internet connection known as a wide-area network (WAN) connects front-end users (for example, client-side interface made visible through web-enabled devices) with back-end functions (for example, data centers and cloud-based applications and services). Other advanced cloud computing networking technologies, including load balancers , content delivery networks (CDNs) and software-defined networking (SDN) , are also incorporated to ensure data flows quickly, easily and securely between front-end users and back-end resources. 

Cloud computing relies heavily on the virtualization of IT infrastructure —servers, operating system software, networking and other infrastructure that’s abstracted using special software so that it can be pooled and divided irrespective of physical hardware boundaries. For example, a single hardware server can be divided into multiple virtual servers . Virtualization enables cloud providers to make maximum use of their data center resources. 

IaaS (Infrastructure-as-a-Service), PaaS (Platform-as-a-Service), SaaS (Software-as-a-Service) and serverless computing are the most common models of cloud services, and it’s not uncommon for an organization to use some combination of all four.

IaaS (Infrastructure-as-a-Service) provides on-demand access to fundamental computing resources—physical and virtual servers, networking and storage—over the internet on a pay-as-you-go basis. IaaS enables end users to scale and shrink resources on an as-needed basis, reducing the need for high up-front capital expenditures or unnecessary on-premises or "owned" infrastructure and for overbuying resources to accommodate periodic spikes in usage. 

According to a  Business Research Company report  (link resides outside ibm.com), the IaaS market is predicted to grow rapidly in the next few years, growing to $212.34 billion in 2028 at a compound annual growth rate (CAGR) of 14.2%. 

PaaS (Platform-as-a-Service) provides software developers with an on-demand platform—hardware, complete software stack, infrastructure and development tools—for running, developing and managing applications without the cost, complexity and inflexibility of maintaining that platform on-premises. With PaaS, the cloud provider hosts everything at their data center. These include servers, networks, storage, operating system software, middleware  and databases. Developers simply pick from a menu to spin up servers and environments they need to run, build, test, deploy, maintain, update and scale applications.

Today, PaaS is typically built around  container s , a virtualized compute model one step removed from virtual servers. Containers virtualize the operating system, enabling developers to package the application with only the operating system services it needs to run on any platform without modification and the need for middleware.

Red Hat® OpenShift ® is a popular PaaS built around  Docker  containers and  Kubernetes , an open source container orchestration solution that automates deployment, scaling, load balancing and more for container-based applications.

SaaS (Software-as-a-Service) , also known as cloud-based software or cloud applications, is application software hosted in the cloud. Users access SaaS through a web browser, a dedicated desktop client or an API that integrates with a desktop or mobile operating system. Cloud service providers offer SaaS based on a monthly or annual subscription fee. They may also provide these services through pay-per-usage pricing. 

In addition to the cost savings, time-to-value and scalability benefits of cloud, SaaS offers the following:

• Automatic upgrades:  With SaaS, users use new features when the cloud service provider adds them without orchestrating an on-premises upgrade.
• Protection from data loss:  Because SaaS stores application data in the cloud with the application, users don’t lose data if their device crashes or breaks.

SaaS is the primary delivery model for most commercial software today. Hundreds of SaaS solutions exist, from focused industry and broad administrative (for example, Salesforce) to robust enterprise database and artificial intelligence (AI) software. According to an International Data Center (IDC) survey (the link resides outside IBM), SaaS applications represent the largest cloud computing segment, accounting for more than 48% of the $778 billion worldwide cloud software revenue.

Serverless computing , or simply serverless, is a cloud computing model that offloads all the back-end infrastructure management tasks, including provisioning, scaling, scheduling and patching to the cloud provider. This frees developers to focus all their time and effort on the code and business logic specific to their applications.

Moreover, serverless runs application code on a per-request basis only and automatically scales the supporting infrastructure up and down in response to the number of requests. With serverless, customers pay only for the resources used when the application runs; they never pay for idle capacity. 

FaaS, or Function-as-a-Service , is often confused with serverless computing when, in fact, it’s a subset of serverless. FaaS allows developers to run portions of application code (called functions) in response to specific events. Everything besides the code—physical hardware, virtual machine (VM) operating system and web server software management—is provisioned automatically by the cloud service provider in real-time as the code runs and is spun back down once the execution is complete. Billing starts when execution starts and stops when execution stops.

A  public cloud is a type of cloud computing in which a cloud service provider makes computing resources available to users over the public internet. These include SaaS applications, individual  virtual machines (VMs) , bare metal computing hardware, complete enterprise-grade infrastructures and development platforms. These resources might be accessible for free or according to subscription-based or pay-per-usage pricing models.

The public cloud provider owns, manages and assumes all responsibility for the data centers, hardware and infrastructure on which its customers’ workloads run. It typically provides high-bandwidth network connectivity to ensure high performance and rapid access to applications and data.

Public cloud is a  multi-tenant environment  where all customers pool and share the cloud provider’s data center infrastructure and other resources. In the world of the leading public cloud vendors, such as Amazon Web Services (AWS), Google Cloud, IBM Cloud®, Microsoft Azure and Oracle Cloud, these customers can number in the millions.

Most enterprises have moved portions of their computing infrastructure to the public cloud since public cloud services are elastic and readily scalable, flexibly adjusting to meet changing workload demands. The promise of greater efficiency and cost savings through paying only for what they use attracts customers to the public cloud. Still, others seek to reduce spending on hardware and on-premises infrastructure.  Gartner predicts  (link resides outside ibm.com) that by 2026, 75% of organizations will adopt a digital transformation model predicated on cloud as the fundamental underlying platform. 

A  private cloud is a cloud environment where all cloud infrastructure and computing resources are dedicated to one customer only. Private cloud combines many benefits of cloud computing—including elasticity, scalability and ease of service delivery—with the access control, security and resource customization of on-premises infrastructure.

A private cloud is typically hosted on-premises in the customer’s data center. However, it can also be hosted on an independent cloud provider’s infrastructure or built on rented infrastructure housed in an offsite data center.

Many companies choose a private cloud over a public cloud environment to meet their regulatory compliance requirements. Entities like government agencies, healthcare organizations and financial institutions often opt for private cloud settings for workloads that deal with confidential documents, personally identifiable information (PII), intellectual property, medical records, financial data or other sensitive data.

By building private cloud architecture according to  cloud-native  principles, an organization can quickly move workloads to a public cloud or run them within a hybrid cloud (see below) environment whenever ready.

A  hybrid cloud is just what it sounds like: a combination of public cloud, private cloud and on-premises environments. Specifically (and ideally), a hybrid cloud connects a combination of these three environments into a single, flexible infrastructure for running the organization’s applications and workloads. 

At first, organizations turned to hybrid cloud computing models primarily to migrate portions of their on-premises data into private cloud infrastructure and then connect that infrastructure to public cloud infrastructure hosted off-premises by cloud vendors. This process was done through a packaged hybrid cloud solution like Red Hat® OpenShift® or middleware and IT management tools to create a " single pane of glass ." Teams and administrators rely on this unified dashboard to view their applications, networks and systems.

Today, hybrid cloud architecture has expanded beyond physical connectivity and cloud migration to offer a flexible, secure and cost-effective environment that supports the portability and automated deployment of workloads across multiple environments. This feature enables an organization to meet its technical and business objectives more effectively and cost-efficiently than with a public or private cloud alone. For instance, a hybrid cloud environment is ideal for DevOps and other teams to develop and test web applications. This frees organizations from purchasing and expanding the on-premises physical hardware needed to run application testing, offering faster time to market. Once a team has developed an application in the public cloud, they may move it to a private cloud environment based on business needs or security factors.

A public cloud also allows companies to quickly scale resources in response to unplanned spikes in traffic without impacting private cloud workloads, a feature known as cloud bursting. Streaming channels like Amazon use cloud bursting to support the increased viewership traffic when they start new shows.

Most enterprise organizations today rely on a hybrid cloud model because it offers greater flexibility, scalability and cost optimization than traditional on-premises infrastructure setups. According to the  IBM Transformation Index: State of Cloud , more than 77% of businesses and IT professionals have adopted a hybrid cloud approach.

To learn more about the differences between public, private and hybrid cloud, check out “ Public cloud vs. private cloud vs. hybrid cloud: What’s the difference? ”

Watch the IBM hybrid cloud architecture video series.

Multicloud uses two or more clouds from two or more different cloud providers. A multicloud environment can be as simple as email SaaS from one vendor and image editing SaaS from another. But when enterprises talk about multicloud, they typically refer to using multiple cloud services—including SaaS, PaaS and IaaS services—from two or more leading public cloud providers. 

Organizations choose multicloud to avoid vendor lock-in, to have more services to select from and to access more innovation. With multicloud, organizations can choose and customize a unique set of cloud features and services to meet their business needs. This freedom of choice includes selecting “best-of-breed” technologies from any CSP, as needed or as they emerge, rather than being locked into offering from a single vendor. For example, an organization may choose AWS for its global reach with web-hosting, IBM Cloud for data analytics and machine learning platforms and Microsoft Azure for its security features.

A multicloud environment also reduces exposure to licensing, security and compatibility issues that can result from " shadow IT "— any software, hardware or IT resource used on an enterprise network without the IT department’s approval and often without IT’s knowledge or oversight.

Today, most enterprise organizations use a hybrid multicloud model. Apart from the flexibility to choose the most cost-effective cloud service, hybrid multicloud offers the most control over workload deployment, enabling organizations to operate more efficiently, improve performance and optimize costs. According to an  IBM® Institute for Business Value study , the value derived from a full hybrid multicloud platform technology and operating model at scale is two-and-a-half times the value derived from a single-platform, single-cloud vendor approach. 

Yet the modern hybrid multicloud model comes with more complexity. The more clouds you use—each with its own management tools, data transmission rates and security protocols—the more difficult it can be to manage your environment. With  over 97% of enterprises operating on more than one cloud  and most organizations running  10 or more clouds , a hybrid cloud management approach has become crucial. Hybrid multicloud management platforms provide visibility across multiple provider clouds through a central dashboard where development teams can see their projects and deployments, operations teams can monitor clusters and nodes and the cybersecurity staff can monitor for threats.

Learn more about hybrid cloud management.

Traditionally, security concerns have been the primary obstacle for organizations considering cloud services, mainly public cloud services. Maintaining cloud security demands different procedures and employee skillsets than in legacy IT environments. Some cloud security best practices include the following:

• Shared responsibility for security:  Generally, the cloud service provider is responsible for securing cloud infrastructure, and the customer is responsible for protecting its data within the cloud. However, it’s also essential to clearly define data ownership between private and public third parties.
• Data encryption:  Data should be encrypted while at rest, in transit and in use. Customers need to maintain complete control over security keys and hardware security modules.
• Collaborative management:  Proper communication and clear, understandable processes between IT, operations and security teams will ensure seamless cloud integrations that are secure and sustainable.
• Security and compliance monitoring:  This begins with understanding all regulatory compliance standards applicable to your industry and establishing active monitoring of all connected systems and cloud-based services to maintain visibility of all data exchanges across all environments, on-premises, private cloud, hybrid cloud and edge.

Cloud security is constantly changing to keep pace with new threats. Today’s CSPs offer a wide array of cloud security management tools, including the following:  

• Identity and access management (IAM):  IAM   tools and services that automate policy-driven enforcement protocols for all users attempting to access both on-premises and cloud-based services. 
• Data loss prevention (DLP): DLP services that combine remediation alerts data encryption and other preventive measures to protect all stored data, whether at rest or in motion.
• Security information and event management (SIEM) :   SIEM is a comprehensive security orchestration solution that automates threat monitoring, detection and response in cloud-based environments. SIEM technology uses artificial intelligence (AI)-driven technologies to correlate log data across multiple platforms and digital assets. This allows IT teams to successfully apply their network security protocols, enabling them to react to potential threats quickly.
• Automated data compliance platforms:   Automated software solutions provide compliance controls and centralized data collection to help organizations adhere to regulations specific to their industry. Regular compliance updates can be baked into these platforms so organizations can adapt to ever-changing regulatory compliance standards.

Learn more about cloud security.

Sustainability in business , a company’s strategy to reduce negative environmental impact from their operations in a particular market, has become an essential corporate governance mandate.  Moreover, Gartner predicts  (link resides outside ibm.com) that by 2025, the carbon emissions of hyperscale cloud services will be a top-three criterion in cloud purchase decisions.

As companies strive to advance their sustainability objectives, cloud computing has evolved to play a significant role in helping them reduce their carbon emissions and manage climate-related risks. For instance, traditional data centers require power supplies and cooling systems, which depend on large amounts of electrical power. By migrating IT resources and applications to the cloud, organizations only enhance operational and cost efficiencies and boost overall energy efficiency through pooled CSP resources.

All major cloud players have made net-zero commitments to reduce their carbon footprints and help clients reduce the energy they typically consume using an on-premises setup. For instance, IBM is driven by  sustainable procurement  initiatives to reach NetZero by 2030. By 2025, IBM Cloud worldwide data centers  will comprise energy procurement drawn from 75% renewable sources .

According to an  International Data Corporation (IDC) forecast  (link resides outside ibm.com), worldwide spending on the whole cloud opportunity (offerings, infrastructure and services) will surpass USD 1 trillion in 2024 while sustaining a double-digit compound annual growth rate (CAGR) of 15.7%. Here are some of the main ways businesses are benefitting from cloud computing: 

• Scale infrastructure:  Allocate resources up or down quickly and easily in response to changes in business demands.
• Enable business continuity and disaster recovery:  Cloud computing provides cost-effective redundancy to protect data against system failures and the physical distance required to apply disaster recovery strategies and recover data and applications during a local outage or disaster. All of the major public cloud providers offer Disaster-Recovery-as-a-Service (DRaaS) .
• Build and test cloud-native applications : For development teams adopting Agile,  DevOps  or  DevSecOps to streamline development, the cloud offers on-demand end-user self-service that prevents operations tasks, such as spinning up development and test servers, from becoming development bottlenecks.
• Support edge and IoT environments:  Address latency challenges and reduce downtime by bringing data sources closer to the edge . Support Internet of Things (IoT) devices (for example, patient monitoring devices and sensors on a production line) to gather real-time data.
• Leverage cutting-edge technologies:  Cloud computing supports storing and processing huge volumes of data at high speeds—much more storage and computing capacity than most organizations can or want to purchase and deploy on-premises. These high-performance resources support technologies like  blockchain , quantum computing and  large language models (LLMs ) that power generative AI platforms like customer service automation. 

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Designed for industry, security and the freedom to build and run anywhere, IBM Cloud is a full stack cloud platform with over 170 products and services covering data, containers, AI, IoT and blockchain. Use IBM Cloud to build scalable infrastructure at a lower cost, deploy new applications instantly and scale up workloads based on demand.