Latest news with #IBMFusion
Yahoo
15-07-2025
- Business
- Yahoo
IBM vs. Amazon: Which Cloud Infrastructure Stock Offers More Upside?
International Business Machines Corporation IBM and Inc. AMZN are leading players in the global cloud computing industry. IBM offers cloud and data solutions that aid enterprises in digital transformation. In addition to hybrid cloud services, the company provides advanced information technology solutions, computer systems, quantum computing and supercomputing solutions, enterprise software, storage systems and the other hand, Amazon Web Services ('AWS') is the world's most comprehensive and widely adopted on-demand cloud computing platform, offering more than 200 fully featured services from data centers globally. Millions of customers, including the fastest-growing startups, largest enterprises and leading government agencies, are using AWS to lower costs, become more agile and innovate faster. It reportedly offers the widest variety of databases that are purpose-built for different types of applications to enable subscribers to choose the right tool for the a focus on hybrid cloud and AI (artificial intelligence), both IBM and Amazon are strategically positioned in the cloud infrastructure market and have the wherewithal to cater to the evolving demands of business enterprises. Let us delve a little deeper into the companies' competitive dynamics to understand which of the two is relatively better placed in the industry. IBM is poised to benefit from healthy demand trends for hybrid cloud and AI, which drive the Software and Consulting segments. The company's growth is expected to be aided by analytics, cloud computing and security in the long term. IBM has extended its collaboration with NVIDIA Corporation NVDA to scale AI workloads and agentic AI applications. Per the latest agreement, IBM aims to launch a content-aware storage (CAS) capability for its hybrid cloud infrastructure offering (dubbed IBM Fusion) and expand its watsonx integrations with NVIDIA while introducing new IBM Consulting capabilities. The CAS capability will enable firms to extract the hidden meaning of unstructured data for inferencing to scale and enhance AI applications without compromising security. The integration of watsonx with NVIDIA Inference Microservices will offer firms greater accessibility to leading AI models across multiple cloud environments. IBM's watsonx platform is likely to be the core technology platform for its AI capabilities. This enterprise-ready AI and data platform delivers the value of foundational models to the enterprise, enabling them to be more solid hybrid cloud and AI traction, IBM is facing stiff competition from AWS and Microsoft Corporation's MSFT Azure. Increasing pricing pressure is eroding margins, and profitability has trended down over the years, barring occasional spikes. The company's ongoing, heavily time-consuming business model transition to the cloud is a challenging task. Weakness in its traditional business and foreign exchange volatility remain significant concerns. Amazon is the leading provider of cloud infrastructure as a service to enterprise customers. The expanding customer base of AWS, driven by its strengthening cloud offerings, will continue to aid Amazon's dominance in the global cloud space. Amazon's strategic expansion of its Bedrock platform has positioned it as a frontrunner in the enterprise AI race. Amazon Bedrock has emerged as a game-changing, fully managed service that offers enterprises seamless access to high-performing foundation models from leading AI companies. The platform's recent developments, including automated reasoning checks and multi-agent collaboration capabilities, address critical challenges in AI adoption while opening new revenue streams for Amazon's cloud company is investing heavily in AI infrastructure, including the development of custom AI silicon like Trainium 2, which offers 30-40% better price performance than competing GPU-powered instances. Amazon aims to extend AWS' AI and machine learning (ML) capabilities to facilitate improved decision-making. It intends to expand its global infrastructure for faster and more reliable service with low latency and maximum availability. From cloud-native applications and AI-driven solutions to edge computing and sustainability initiatives, AWS is likely to push the limits in the realm of cloud computing the substantial capital expenditure required for AI infrastructure expansion may weigh on margins in the coming quarters. In addition, while AWS' growth remains impressive, the company faces capacity constraints in AI services that could limit near-term growth potential. Moreover, AWS has historically been less open to hybrid cloud than rivals like Microsoft Azure, which integrates well with on-premise environments via tools like Azure Arc. Data localization laws and stricter regulatory requirements create friction for AWS' global expansion, while stringent government scrutiny in regions like the EU and China adds compliance complexity. The Zacks Consensus Estimate for IBM's 2025 sales and EPS implies year-over-year growth of 5.5% and 6%, respectively. The EPS estimates, however, have remained static over the past 60 days. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Amazon's 2025 sales and EPS implies year-over-year growth of 8.9% and 12.7%, respectively. The EPS estimates have been trending northward over the past 60 days. Image Source: Zacks Investment Research Over the past year, IBM has gained 52.6% compared with the industry's growth of 7.2%. Amazon rose 16.9% over the same period. Image Source: Zacks Investment Research IBM looks more attractive than Amazon from a valuation standpoint. Going by the price/earnings ratio, IBM's shares currently trade at 25.05 forward earnings, significantly lower than Amazon's 33.38. Image Source: Zacks Investment Research IBM carries a Zacks Rank #3 (Hold), while Amazon carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks companies expect their sales and profits to improve in 2025. Long-term earnings growth expectations for IBM and AMZN are 4.3% and 21.4%, respectively. IBM has a better price performance and attractive valuation metric compared with Amazon. However, Amazon has shown steady revenue and EPS growth for years, while IBM has been facing a bumpy road. With a VGM Score of A and a superior Zacks Rank, Amazon seems to be a better investment option at the moment. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Channel Post MEA
22-03-2025
- Business
- Channel Post MEA
IBM and NVIDIA Expand Collaboration to Accelerate AI at Scale
IBM has announced new collaborations with NVIDIA, including planned new integrations based on the NVIDIA AI Data Platform reference design to help enterprises more effectively put their data to work to help build, scale and manage generative AI workloads and agentic AI applications. As part of today's news, IBM is planning to launch a content-aware storage capability for its hybrid cloud infrastructure offering, IBM Fusion; intends to expand its watsonx integrations; and is introducing new IBM Consulting capabilities with NVIDIA to help drive AI innovation across the enterprise. A 2024 IBM report found that more than three in four executives surveyed (77 percent) say generative AI is market-ready, up from just 36 percent in 2023. With this push to put AI into production comes an increased need for compute and data-intensive technologies. The collaboration between IBM and NVIDIA will enable IBM to provide hybrid AI solutions that take advantage of open technologies and platforms while also supporting data management, performance, security, and governance. Leveraging the NVIDIA AI Data Platform reference architecture, these new solutions are the latest in the IBM and NVIDIA collaboration to build enterprise infrastructure for AI: Augmenting Unstructured Data Processing for AI Performance : With IBM's new content-aware storage (CAS) capability, enterprises will be able to extract the meaning hidden in their rapidly growing volumes of unstructured data for inferencing, without compromising trust and safety, to responsibly scale and enhance AI applications like retrieval-augmented generation (RAG) and AI reasoning. IBM Storage Scale will respond to queries using the extracted and augmented data, speeding up the communications between GPUs and storage using NVIDIA BlueField-3 DPUs and NVIDIA Spectrum-X networking. The multimodal document data extraction workflow will also leverage NVIDIA NeMo Retriever microservices, built with NVIDIA NIM. CAS will be embedded in the next update of IBM Fusion planned for the second quarter of this year. : With IBM's new content-aware storage (CAS) capability, enterprises will be able to extract the meaning hidden in their rapidly growing volumes of unstructured data for inferencing, without compromising trust and safety, to responsibly scale and enhance AI applications like retrieval-augmented generation (RAG) and AI reasoning. IBM Storage Scale will respond to queries using the extracted and augmented data, speeding up the communications between GPUs and storage using NVIDIA BlueField-3 DPUs and NVIDIA Spectrum-X networking. The multimodal document data extraction workflow will also leverage NVIDIA NeMo Retriever microservices, built with NVIDIA NIM. CAS will be embedded in the next update of IBM Fusion planned for the second quarter of this year. Enabling More Accessible AI : IBM plans to integrate its watsonx offerings with NVIDIA NIM as part of a larger effort to provide access to leading AI models across multiple cloud environments. This will allow organizations to leverage IBM's enterprise-grade AI platform and developer studio, to develop and deploy AI models into their applications of choice while utilizing externally hosted models. IBM's also allows enterprises to implement robust monitoring and governance of NVIDIA NIM microservices across any hosting environment. This type of interoperability is increasingly essential as organizations adopt agentic AI and other advanced applications that require AI model integration. : IBM plans to integrate its watsonx offerings with NVIDIA NIM as part of a larger effort to provide access to leading AI models across multiple cloud environments. This will allow organizations to leverage IBM's enterprise-grade AI platform and developer studio, to develop and deploy AI models into their applications of choice while utilizing externally hosted models. IBM's also allows enterprises to implement robust monitoring and governance of NVIDIA NIM microservices across any hosting environment. This type of interoperability is increasingly essential as organizations adopt agentic AI and other advanced applications that require AI model integration. Increasing Support for Compute-Intensive Workloads : With more enterprises embracing generative AI and high-performance computing (HPC), IBM Cloud expanded its NVIDIA accelerated computing portfolio by announcing the availability of NVIDIA H200 instances on IBM Cloud. With its large memory capacity and high bandwidth, the NVIDIA H200 Tensor Core GPU instances are engineered to meet the demands of modern AI workloads and larger foundation models. : With more enterprises embracing generative AI and high-performance computing (HPC), IBM Cloud expanded its NVIDIA accelerated computing portfolio by announcing the availability of NVIDIA H200 instances on IBM Cloud. With its large memory capacity and high bandwidth, the NVIDIA H200 Tensor Core GPU instances are engineered to meet the demands of modern AI workloads and larger foundation models. Transforming Processes with Agentic AI and NVIDIA: IBM Consulting is introducing AI Integration Services to help clients transform and govern end-to-end business processes with agentic AI using NVIDIA Blueprints, such as industry-specific workflows that require agentic AI at the edge. Example use cases include autonomous inspection and maintenance in the manufacturing industry or proactive video data analysis and anomaly response in the energy industry. IBM Consulting is introducing AI Integration Services to help clients transform and govern end-to-end business processes with agentic AI using NVIDIA Blueprints, such as industry-specific workflows that require agentic AI at the edge. Example use cases include autonomous inspection and maintenance in the manufacturing industry or proactive video data analysis and anomaly response in the energy industry. Optimizing Compute Intensive AI Workloads Across Hybrid Cloud Environments: IBM Consulting helps clients build, modernize and manage compute-intensive AI workloads across hybrid cloud environments leveraging RedHat OpenShift and NVIDIA AI. This includes technologies like NVIDIA AI Foundry, NVIDIA NeMo, NVIDIA AI Enterprise, NVIDIA Blueprints, and NVIDIA Clara to accelerate high-compute, complex tasks, while managing AI governance, data security and compliance requirements. 'IBM is focused on helping enterprises build and deploy effective AI models and scale with speed,' said Hillery Hunter , CTO and General Manager of Innovation, IBM Infrastructure. 'Together, IBM and NVIDIA are collaborating to create and offer the solutions, services and technology to unlock, accelerate, and protect data – ultimately helping clients overcome AI's hidden costs and technical hurdles to monetize AI and drive real business outcomes.' 'AI agents need to rapidly access, fetch and process data at scale, and today, these steps occur in separate silos,' said Rob Davis , vice president, Storage Networking Technology, NVIDIA. 'The integration of IBM's content-aware storage with NVIDIA AI orchestrates data and compute across an optimized network fabric to overcome silos with an intelligent, scalable system that drives near real-time inference for responsive AI reasoning.' 0 0
Yahoo
19-03-2025
- Business
- Yahoo
IBM Partners with NVIDIA to Supercharge Generative AI Workloads
IBM (IBM, Financial) on Tuesday revealed new collaborations with NVIDIA (NVDA, Financial) aimed at accelerating AI adoption at scale. The partnership centres on integrating NVIDIA's AI Data Platform reference design into IBM's portfolio, which will help enterprises scale and manage generative AI workloads. As part of this initiative, IBM plans to launch a content-aware storage capability within its hybrid cloud infrastructure, IBM Fusion. In addition, the company intends to broaden its Watsonx integrations and introduce enhanced IBM Consulting services with NVIDIA to drive AI innovation across its global customer base. By leveraging NVIDIA's advanced technologies, IBM aims to deliver hybrid AI solutions that combine open platforms with robust data management, performance, security, and governance capabilities. This strategic move is expected to further strengthen IBM's position in the competitive AI market and support its long-term growth initiatives. This shows the industry's focus on the scaling of AI infrastructures and another step by IBM to meet the expected growth. This article first appeared on GuruFocus. Sign in to access your portfolio
