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Home » How IBM Can Leverage Acquisition to Advance ‘Deep Cloud’
Cloud Wars Horizon

How IBM Can Leverage Acquisition to Advance ‘Deep Cloud’

Tom SmithBy Tom SmithDecember 14, 2022Updated:December 14, 20222 Mins Read
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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.  


For more exclusive coverage of innovative cloud companies, check out Cloud Wars Horizon here:

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Tom Smith

Editor in Chief, analyst, Cloud Wars

Areas of Expertise
  • AI/ML
  • Business Apps
  • Cloud
  • Digital Business

Tom Smith analyzes AI, copilots, cloud companies, and tech innovations for Cloud Wars. He has worked as an analyst tracking technology and tech companies for more than 20 years.

  Contact Tom Smith ...

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