In this Cloud Wars Horizon Minute, episode 78, Tom Smith puts the latest acquisition by IBM, of the consulting firm Octo, in context.
Highlights
00:17 — IBM’s recently announced acquisition of Octo, a digital transformation specialist serving federal government agencies, has several important ramifications:
- It establishes one of the largest providers of digital transformation services to the government, with 4,200 employees focused on this vertical after Octo’s 1,500 employees join IBM Consulting.
- It gives the company a significantly increased opportunity to build out its “deep cloud” concept for digital transformation success.
00:58 — Deep Cloud is an IBM construct to make digital transformation more successful than it’s been to date, by leveraging several key practices that too often are missing, including:
- Directing investment at core business functions that impact the customer
- Applying strict financial tracking — specifically cost/income ratio — that ensures the tech investment meets rigorous financial objectives
- Use of the right technology “toolkit” that includes hybrid cloud, security, networking, and other elements
01:40 —At Acceleration Economy, our analyses have consistently advocated similar areas of focus, so we feel closely aligned with IBM’s thinking on Deep Cloud.
01:53 — The deal furthers CEO Arvind Krishna’s focus on growing the business in part through acquisitions as well as expanding the reach of the consulting business.
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