IBM has promised to deliver earnings of $20 per share to stockowners by 2015. The public commitment puts pressure not just on revenue generators like salespeople and product specialists, it also has the company's IT management under the gun to reduce costs without hurting Big Blue's ability to operate and innovate on a global basis.
That's the pressure-cooker of a background against which newly-installed CIO Jeanette Horan is leading IBM through a transition that will see the company migrate the bulk of its critical systems to an internal cloud environment. "We have to drive down our cost of running IT," said Horan, at lunch event with reporters in New York City.
With that in mind, IBM is adopting a cloud-based version of its Cognos software for business analytics, and it's also putting the development and test centre for its 5,000 internal applications in the cloud. In addition, the company is building out a storage cloud, and a desktop cloud that will ease its ability to bring on new workers no matter which part of the world they are based. The latter "is the next step" on IBM's cloud journey, said Horan, who was named CIO last month.
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