CEO, Jim Whitehurst, Eight Percent discussed on Bloomberg Markets

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Rometty and red hat CEO Jim Whitehurst earlier today let's take a listen did you know Mr with you right the top of your press release you say that this acquisition of red hat now you've completed will position IBM as a leader in hybrid cloud why is that important well I recalls important because it's important to our clients it is the destination for the cloud you know David think a lot of times people think of why everything's gonna move to one public cloud that is not what we see clients need want and are even targeted to it is this idea that I've got an existing a state like a house I'm gonna modernizes and I have five to fifteen public clouds already private clouds on pram it is a modern idea modernize an app I'm gonna put it where I want and then I have to manage and secure all that that is the destination in for the next generation we give them now a platform between red hat and IBM it runs on any public cloud that runs private that runs traditional in they can write an app once run anywhere secure and manage it that is a distinct and unique capability and that's what I mean by the hybrid cloud and that does make us the leader in that others talk it but they may have just a connection between their public cloud in their private cloud this and now allows us to be multi coloured everywhere what will is G. says of Jim the the you got some other competitor in the cloud not hybrid cloud the cloud they're pretty darn big people like Amazon Google house is going to help you catch up to them or is that even the goal I'll start for the red hat component our goal is to be an even better partner with those clouds they're great partners our software runs on those clouds it runs on premise that runs on IBM's caught it runs on on those clouds so they will continue to be great partners for us and as we are capable of moving many more workloads on to our software platform that's more workloads at those clouds can actually go in a dress and run so my conversations with the major clouds have been very very positive because these they see this is an opportunity to get more workloads out of datacenters running on the clouds do you think of that that's a really important reason to do this for us our clients want us to be able to take our platform in running anywhere so these are both partners and we cooperate or in competition on the other side Ginny you've wrapped up the IBM percentage of your revenue from the cloud dramatically from selling four percent to twenty five percent reason sure pretty time what's the ultimate goal world this get you too well look and not that is an ultimate goal as you think about the clients moving their work eighty percent are working to move to the hybrid cloud so this will continue on and again when we look at our revenues it transcends everything from our public cloud private cloud now these platforms it'll be on other clouds included in our services revenue so it isn't that it's a goal is to move with the same journey that our clients need to move with and what what what moving Jenny what I'm doing with the overall size of the cloud expanding how much of this will just be riding with the cloud up and how much will be actually taking market share from other cloud providers yeah so look for IBM itself one way to think about this is two hundred basis points of revenue growth CAGR over a five year period and so this is what Jim just said a minute ago the import part to think of it is our own cloud the IBM IBM public cloud in our private cloud together should be the very best for mission critical work clients so as I said if I detecting clouds are ready so we also want to have our platform running everywhere else so as far as I'm concerned growth anywhere is going to be good for IBM yeah it's emphasize that this is all about helping our clients provide more value to their customers right so when client building new application new website and new mobile application the opportunities for us to participate weather is helping them build the application helping them integrate that with data having a run on a platform have it run on IBM's cloud any of those components are you know areas of incremental value that we can you know participate in as our customers create more value for their customers let's talk about how this will work together IBM red hat together because the second line you're Presley's actually talked about IBM preserving red hat independence Jim how important is it to the people who work at red hat right now it is really important not only just to the people who work at red hat to our commercial success we talk a lot to work capabilities driven company our capability around open source allows us to be involved in these communities and to have a durable success whether was Lennix OpenStack commodities in containers and capabilities tied up in our culture and so it's not just our people one our culture that we would see it is true but it is integral to our success I think IBM recognizes that so this is about bringing our two cultures to work together to create unique value not to integrate to create one culture we've been listening to IBM CEO Ginni Rometty at red hat CEO Jim up white hers in a conversation it with Bloomberg television anchor David Westin talking about how this isn't just a bit of four scale it is also a strategic move for both companies IBM shares today trading lower just a touch although in general there has been a real move higher there without shares of IBM up twenty six five point eight percent twenty five point eight percent since the end of last year so a real Bull Run there but we are seeing more consolidation in the technology space one of the big deals of the day was the one that has been continually highlighted by by our own Dave will say in it which again shows this on going ugh consolidation with Cisco buying a cashier for two point six billion dollars to add optical technology the expectation is we'll continue to see more consolidation coming up we have a conversation about the dollar will it continue to weaken as many people expect are in as president trump tries to push it lower or will it strengthen as the ECB starts taking the helm out with potentially another round of quantitative easing I'm Lisa brown what's my co host and colleague Paul Sweeny out in Idaho.

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