It is reported that IBM sets a goal of next revenue at $1 billion for its Cloud Infrastructure service SoftLayer.
The confirmed source indicated that this yearly revenue of SoftLayer business will reach $700 million -$800 million. It means that the growing rate for SoftLayer business for next year will be increased by 25%.
IBM acquired SoftLayer in 2013. The yearly revenue of SoftLayer was $335 million before the acquisition.
IBM sets goal for positive increase of Cloud Infrastructure service indicated its made effort to recover its business through SoftLayer after it encountered the problem that consumers declined its other products. As a successor in Cloud service market, IBM’s revenue encountered decline for 14 quarters in a row.
By September 30, the revenue of IBM privatization and public cloud service reach $9.4 billion in the past 12 months. IMB spokesman Ian Colley said:” it will help IBM rank on the top in cloud service market.” But he did not make any comment on SoftLayer’s revenue estimation. Among its $92.8 billion revenue in 2014, $ 7 billion was from cloud service and software section.
SoftLayer is the biggest stake of IBM as the firm paid $2 billion to acquired it. The acquisition of SoftLayer contributed to the enhancement of IBM’s cloud service so that it could rival with Amazon and Microsoft. The firm claimed that it invested $1.2 billion to build 15 data centers in 2014.
Bloomberg reported that the competition in cloud computing market will be intense among Amazon, Microsoft and Google in 2016.
