While tech stocks were hammered in 2022, the cloud computing industry barreled along at an impressive growth rate. According to research firm Gartner, the public cloud sector alone is estimated to grow 20% this year.
This amounts to nearly half a trillion dollars in 2022. Just a decade ago, global public cloud computing revenue was a mere $26.4 billion.
Given the cloud industry’s rapid expansion, competitors abound. Among the bigger players are tech giants IBM (IBM 0.65%) and Google Cloud, owned by Alphabet (GOOGL 1.08%) (GOOG 1.04%).
IBM’s cloud strategy
IBM spent the past few years reinventing itself into a hybrid cloud-focused company. In a hybrid cloud implementation, a business employs both public and private clouds, using the former to perform basic IT infrastructure tasks, such as hosting a corporate website, and the latter to secure confidential or critical data, including financial and customer records.
IBM was smart to focus on this area. The hybrid cloud market is forecasted to grow from $85.3 billion last year to $262.4 billion by 2027.
In addition, IBM’s impressive list of enterprise clients is an ideal fit for hybrid cloud solutions. Big Blue’s customers include the top ten banks, governments, and healthcare companies in the world. These industries need the security of a private cloud while capturing the cost savings of a public one.