Latest news with #hybridcloud
Globe and Mail
5 days ago
- Business
- Globe and Mail
IBM Surpasses Q2 Earnings Estimates on Solid Demand Trends
International Business Machines Corporation IBM reported strong second-quarter 2025 results, with adjusted earnings and revenues beating the respective Zacks Consensus Estimate. The company witnessed healthy demand trends for hybrid cloud and artificial intelligence (AI) solutions with a client-focused portfolio and broad-based growth. IBM exceeded the target metrics related to revenue, profitability and cash flow growth for the quarter. Despite economic uncertainty stemming from geopolitical issues, supply chain vulnerabilities, constrained federal spending and the evolving landscape of interest rates and inflation levels, the company expects to deliver sustainable growth through advanced technology and deep consulting expertise. Net Income On a GAAP basis, net income for the reported quarter was $2.19 billion or $2.31 per share compared with $1.83 billion or $1.96 per share in the year-ago quarter. The significant improvement in GAAP earnings was primarily led by top-line growth. Excluding non-recurring items, non-GAAP net income from continuing operations was $2.80 per share compared with $2.43 in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 16 cents. Quarter Details Quarterly total revenues increased to $16.98 billion from $15.77 billion on strong demand for hybrid cloud and AI, driving growth in the Software segment. On a constant currency basis, revenues were up 5% year over year. The top line exceeded the consensus estimate of $16.58 billion. Gross profit improved to $9.98 billion from $8.95 billion in the prior-year quarter, resulting in respective gross margins of 58.8% and 56.8% owing to a strong portfolio mix. Total expenses increased to $7.38 billion from $6.73 billion due to higher selling, general and administrative expenses and research and development costs. Segmental Performance Software: Revenues improved to $7.39 billion from $6.74 billion, driven by growth in Hybrid Cloud (Red Hat, up 16%), Automation (16%), Data (9%) and Transaction Processing (1%). The segment's revenues missed our estimate of $7.52 billion despite solid hybrid cloud traction. Segment profit was $2.3 billion compared with $2.1 billion in the year-ago quarter for margins of 31.1% and 31.3%, respectively. The company is witnessing healthy hybrid cloud adoption by clients and solid demand trends across automation and generative AI offerings like watsonx. Consulting: Revenues were $5.31 billion compared with $5.18 billion a year ago as clients prioritized spending and pulled back on discretionary projects. The segment's revenues beat our estimate of $5.17 billion. Segment profit improved to $562 million from $463 million for margins of 10.6% and 8.9%, respectively. Infrastructure: Revenues were $4.14 billion compared with $3.64 billion on higher demand for hybrid and distributed infrastructure. Segment profit was $965 million compared with $654 million in the year-ago quarter, for respective margins of 23.3% and 17.9%. This reflected strength in the z17 program as AI use cases resonated strongly with clients. Higher investments in the business across areas like AI, hybrid cloud and quantum also buoyed segment performance. Financing: Revenues declined to $166 million from $169 million a year ago. Segment profit was up to $179 million from $77 million in the year-ago quarter for respective margins of 107.9% and 45.3%. Cash Flow & Liquidity During the quarter, IBM generated $1.7 billion in cash from operations compared with $2.07 billion in the year-ago quarter, bringing the respective tallies for the first six months of 2025 and 2024 to $6.07 billion and $6.23 billion. Free cash flow was $2.84 billion in the quarter, up from $2.61 billion in the prior-year period, driven by higher profit and working capital efficiencies. As of June 30, 2025, the company had $11.94 billion in cash and cash equivalents with $55.22 billion of long-term debt. Outlook For 2025, the company expects revenues to grow at least 5% on a constant currency basis, driven by a strong portfolio mix, operating leverage and yield from productivity initiatives. Free cash flow is expected to be in the vicinity of $13.5 billion. Zacks Rank IBM currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Upcoming Releases Arista Networks Inc. ANET is scheduled to release second-quarter 2025 earnings on Aug. 5. The Zacks Consensus Estimate for earnings is pegged at 65 cents per share, suggesting a growth of 25% from the year-ago reported figure. Arista has a long-term earnings growth expectation of 14.8%. Arista delivered an average earnings surprise of 11.8% in the last four reported quarters. Akamai Technologies, Inc. AKAM is slated to release second-quarter 2025 earnings on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at $1.55 per share, indicating a 1.9% decline from the year-ago reported figure. Akamai has a long-term earnings growth expectation of 8%. Akamai delivered an average earnings surprise of 4.8% in the last four reported quarters. Pinterest, Inc. PINS is set to release second-quarter 2025 earnings on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at 34 cents per share, implying a growth of 17.2% from the year-ago reported figure. Pinterest has a long-term earnings growth expectation of 33.3%. Pinterest delivered an average earnings surprise of 0.5% in the last four reported quarters. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Akamai Technologies, Inc. (AKAM): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Pinterest, Inc. (PINS): Free Stock Analysis Report
Forbes
7 days ago
- Business
- Forbes
Why Hybrid Cloud Security Is A Top CISO Priority For 2025
Jonathan Fischbein is the Chief Information Security Officer at Check Point Software Technologies. Cloud infrastructure has become the backbone of modern IT frameworks, playing a critical role in supporting services ranging from email and data storage to application hosting and DevOps. As organizations continue to accelerate their adoption of cloud technology to streamline operations and drive business efficiency; they may also be exposing themselves to an expanding array of security risks and vulnerabilities. The rise of hybrid cloud environments—where companies utilize a mix of private and public clouds—has only compounded these security risks. According to research by my company, Check Point, security risks from hybrid cloud deployments pose a unique set of challenges for cybersecurity professionals. From vulnerabilities related to administration and misconfigurations to challenges in threat detection and prevention, global CISOs must become more vigilant in their treatment of hybrid environments. The Complexity Of Cloud Administration As organizations expand their cloud footprint to take advantage of cost, performance and geographic efficiencies, they must now monitor for issues across a more diverse and disconnected cloud ecosystem. With each new cloud service provider comes a new potential threat surface and an opportunity for administrative oversight. Navigating this ever-expanding landscape is no easy task, especially when administrators are tasked with managing myriad configurations and settings to ensure the security of their environments. One of the most challenging aspects of cloud security is the management of non-human identities (NHIs), such as service accounts, API keys and built-in user accounts. These entities are critical to the functionality of cloud systems but can often be misconfigured or inadequately secured, providing easy points of entry for attackers. One example occurred in January 2024, when the advanced nation-state threat group Midnight Blizzard exploited a misconfigured OAuth application in Microsoft's Azure environment. This vulnerability allowed attackers to pivot from testing environments to production, accessing sensitive systems and even internal emails from top Microsoft executives. In India, a misconfigured S3 bucket exposed over 500GB of sensitive personal and biometric data, including information from military personnel, while other major corporations also experienced breaches due to misconfigured cloud storage containers. The Hazards Of Hybrid Environments Many organizations use identity and access management (IAM) solutions to integrate and streamline user authentication across both cloud and on-premises systems. While this integration provides seamless user experiences, it also creates potential pathways for lateral movement by attackers. Why is this so important? Once attackers compromise an on-premises network, they can pivot into cloud environments through various vectors, including hybrid user accounts and cloud connectors. In 2024, an attack like this occurred when the financially motivated threat actor Storm-0501 launched a series of multi-stage attacks against hybrid cloud environments. These attacks allowed the actor to deploy backdoor accounts, spread ransomware and infiltrate sensitive systems across the network. Securing Single Sign-On Accounts Single sign-on (SSO) systems have become a popular method for managing authentication across cloud and on-premises applications. However, as organizations increasingly rely on third-party SSO providers, cybercriminals have shifted more focus to exploiting these services. Credential stuffing and brute-force attacks are common tactics used to compromise SSO accounts, making them prime targets for advanced persistent threat (APT) groups. This highlights a critical concern: the reliance on third-party SSO providers for security can be risky, especially if their own security practices are not up to par. Without comprehensive visibility into log data and account activity, organizations may struggle to detect and respond to security incidents in a timely manner. The Emergence Of AI-Driven Threats As cloud providers integrate more advanced technologies into their offerings, one of the most significant emerging threats comes from generative AI. Cloud services now provide the infrastructure to build, train and deploy custom large language models (LLMs), enabling companies to create tailored AI solutions for their specific business needs. These models can integrate proprietary data, offering better control over sensitive information and ensuring privacy. However, as AI becomes more accessible, threat actors are finding new ways to exploit these technologies. One of the newest threats is a form of cloud hijacking known as LLM-jacking. In this attack, malicious actors compromise cloud accounts to take control of existing hosted LLM models or deploy their own. Once in control, attackers can resell access to these models or exploit them for malicious purposes. For example, one group used an LLM proxy to resell access to the model, while others leveraged jailbreaks to create and sell uncensored chatbot characters. This trend isn't just hypothetical. Threat groups have been caught using ChatGPT to generate advanced tools and research vulnerabilities. There is also now growing evidence that threat actors may pivot to private LLM instances to gain better operational security, using cloud-based AI for more sophisticated, harder-to-detect attacks. Hybrid Cloud Visibility And Protection Have Become Mission-Critical The cloud's attack surface is growing exponentially as businesses continue to leverage its capabilities for operational efficiency. Protecting these environments requires staying ahead of evolving threats, securing both cloud and hybrid infrastructures, and continuously refining security practices. The key to mitigating cloud vulnerabilities lies in understanding the technology's evolving nature and taking proactive measures to safeguard sensitive data and systems. Of course, in the AI era, a prevention-first security strategy means organizations must leverage AI solutions to drive real-time detection and response and consolidate security operations. Most importantly, security must be a primary business goal. Building modern cyber resilience requires a robust zero trust strategy, automated threat and misconfiguration management, agile and comprehensive data protection and more. Organizations must prioritize the investments and tactics that will help them build the cybersecurity foundation they need. By staying ahead of the curve, businesses can defend against the next generation of cloud-based cyberattacks. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Yahoo
17-07-2025
- Business
- Yahoo
Hybrid Clouds Aid U.S. Public Sector's IT Transformation
State and local agencies turn to service providers for urgent system modernization under budget, workforce limitations, ISG Provider Lens® report says STAMFORD, Conn., July 16, 2025--(BUSINESS WIRE)--Many agencies in the U.S. public sector are turning to hybrid cloud managed services to replace outdated legacy systems amid budget and staffing constraints, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm. The 2025 ISG Provider Lens® Private/Hybrid Cloud — Data Center Services report for the U.S. Public Sector finds that state, local and educational (SLED) organizations are focusing their technology investments on modernization, cybersecurity and hybrid clouds. The growth of the SLED IT market is slowing due to limited resources and recent changes in the federal government. Despite these hurdles, 90 percent of SLED agencies are expected to adopt hybrid cloud models. "U.S. public agencies are looking for IT modernization projects with measurable outcomes, provided through AI-powered tools and automation," said Nathan Frey, ISG partner and lead, U.S. Public Sector. "They are relying on managed service providers to administer their IT assets and supply the skills necessary for digital transformation." Legacy systems in the public sector, some of them decades old, burden agencies with high costs and inefficiencies while keeping them from meeting constituents' evolving service expectations, the report says. Most agencies want to replace outdated systems with secure, scalable cloud-based solutions but lack the in-house expertise to do this. Managed service providers facilitate infrastructure upgrades for better IT performance, security and compliance, along with specialized knowledge to ensure applications gain the benefits of hybrid cloud environments. As they transition to complex, modern IT architectures, public agencies are also embracing automation and AI for IT operations (AIOps), ISG says. These capabilities can identify potential issues early, preventing major failures, and automate repetitive tasks. AIOps also helps organizations sift through the large volumes of data the public sector generates to glean actionable insights and make useful predictions. Data management is becoming critical for SLED agencies as they seek to deliver better services and make more informed policy decisions, the report says. Comprehensive solutions from managed services providers, encompassing data storage, enhanced security and advanced analytics, allow organizations to organize and protect sensitive data. To remain financially sustainable while advancing their IT capabilities, public-sector agencies are implementing FinOps tools from service providers to control cloud costs, the report says. Many are also taking advantage of pay-as-you-go service contracts that let them align their IT expenditures directly with usage. Emerging automation capabilities are also reducing operating costs by streamlining processes. "Advanced cloud service models enable public agencies to improve operations despite significant, ongoing resource limitations," said Shashank Rajmane, senior manager and principal analyst, ISG Provider Lens Research, and author of the report. "Ultimately, technology improvements allow them to make government processes quicker and more intuitive for users, fostering greater engagement with citizens." The report also explores other private and hybrid cloud trends in the U.S. public sector, including the impact of complex, evolving IT regulatory requirements and a growing urgency to eliminate data silos for better data sharing among agencies. For more insights into the cloud challenges facing U.S. public-sector agencies, along with ISG's advice for addressing them, see the ISG Provider Lens® Focal Points briefing here. The 2025 ISG Provider Lens® Private/Hybrid Cloud — Data Center Services report for the U.S. Public Sector evaluates the capabilities of 38 providers across three quadrants: Managed Services, Managed Hosting and Colocation Services. The report names Rackspace Technology as a Leader in all three quadrants. It names Ensono, Kyndryl, NTT DATA and Unisys as Leaders in two quadrants each. Accenture, CGI, Equinix, HPE, IBM, Infosys, Iron Mountain and TierPoint are named as Leaders in one quadrant each. In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2025 among private/hybrid cloud data center service providers. Persistent Systems earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry. A customized version of the report is available from Unisys. The 2025 ISG Provider Lens® Private/Hybrid Cloud — Data Center Services report for the U.S. Public Sector is available to subscribers or for one-time purchase on this webpage. About ISG Provider Lens® Research The ISG Provider Lens® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage. About ISG ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments. View source version on Contacts Press Contacts:Laura Hupprich, ISG+1 203 517 Julianna Sheridan, Matter Communications for ISG+1 978-518-4520isg@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-07-2025
- Business
- Yahoo
Hybrid, Multicloud Strategies Gain Traction in U.K.
Growing AI adoption, regulatory pressures accelerate enterprises' shift to hybrid cloud environments, ISG Provider Lens® report says LONDON, July 17, 2025--(BUSINESS WIRE)--Enterprises across the U.K. are rapidly modernizing their cloud infrastructures, motivated by a surge in AI and ML workloads that demand scalable and secure cloud solutions, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm. The 2025 ISG Provider Lens® Private/Hybrid Cloud — Data Center Services report for the U.K. finds an upward trend in the adoption of hybrid and multicloud infrastructure models, with significant growth anticipated within the next three years. Performance, data sovereignty, security and regulatory pressures are the primary drivers of this growth. Hybrid cloud is now the preferred model for many U.K. enterprises, because it lets organizations align workloads with appropriate environments and improve data protection. "U.K. enterprises are actively transitioning toward hybrid and multicloud platforms to support AI and ML workloads and safeguard sensitive data," said Anthony Drake, partner at ISG. "These flexible platforms are crucial for protecting organizations against ransomware and malware threats and for achieving cost efficiency." Enterprises in the U.K. are using hybrid clouds to enhance security with private cloud resources while simultaneously gaining cost savings and flexible scalability from public clouds, ISG says. Increasingly, they are deploying real-time monitoring and ML within private clouds to strengthen data protection, particularly in highly regulated sectors such as healthcare and finance. As organizations embrace cloud environments, they are engaged in large-scale migration of business applications. Most organizations in the U.K. have migrated applications between environments to improve efficiency, capacity, security and innovation, the report says. Companies are optimizing on-premises and private cloud environments by integrating graphics processing units (GPUs) and expanding storage capacities. This approach eases handling of AI and analytical tasks while improving efficiency and resource utilization. Small and midsize enterprises (SMEs) in the U.K. are focused on developing customized cloud solutions to meet industry-specific demands. The uptake of modular data center designs is also on the rise, owing to their low total cost of ownership and accelerated deployment capabilities, ISG says. The U.K. government's designation of data centers as critical infrastructure, coupled with streamlined planning laws, facilitates new data center projects and reinforces a national focus on data protection. The capacity of U.K. data centers is expected to increase twofold by 2028, mainly driven by growing demand for generative AI (GenAI), cloud computing and government-supported infrastructure. "The U.K.'s cloud market is undergoing rapid transformation, with organizations seeking agility through tailored solutions and modular data center designs," said Meenakshi Srivastava, lead analyst, ISG Provider Lens Research, and lead author of the report. "By 2025, 75 percent of enterprise data will be processed outside traditional data centers or cloud environments, indicating a shift in data management practices." The report also explores other trends related to private/hybrid cloud and data center services in the U.K., including an increased emphasis on sustainability and the integration of agentic AI into hybrid and private cloud environments. For more insights into the private/hybrid cloud and data center services challenges that enterprises in the U.K. face, plus ISG's advice for overcoming them, see the ISG Provider Lens® Focal Points briefing here. The 2025 ISG Provider Lens® Private/Hybrid Cloud — Data Center Services report for the U.K. evaluates the capabilities of 69 providers across five quadrants: Managed Services — Large Accounts, Managed Services — Midmarket, Managed Hosting, Colocation Services and AI-Ready Infrastructure Consulting. The report names Fujitsu and Kyndryl as Leaders in three quadrants each. It names Accenture, Capgemini, Claranet, DXC Technology, Ensono, Hexaware, Infosys, Pulsant, Rackspace Technology, T-Systems and TCS as Leaders in two quadrants each. Atos, Computacenter, Deloitte, Digital Realty, Equinix, Global Switch, HCLTech, IBM, LTIMindtree, NTT DATA, Redcentric, Telefonica Tech, Telehouse, Unisys and Wipro are named as Leaders in one quadrant each. In addition, LTIMindtree, Mphasis and NTT DATA are named as Rising Stars — companies with a "promising portfolio" and "high future potential" by ISG's definition — in one quadrant each. In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2025 among private/hybrid cloud and data center service providers. Persistent Systems earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry. Customized versions of the report are available from Hexaware and Unisys. The 2025 ISG Provider Lens® Private/Hybrid Cloud — Data Center Services report for the U.K. is available to subscribers or for one-time purchase on this webpage. About ISG Provider Lens® Research The ISG Provider Lens® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage. About ISG ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments. View source version on Contacts Sarah Ye, ISG+44 7833 Laura Hupprich, ISG+1 203 517
Tahawul Tech
17-07-2025
- Business
- Tahawul Tech
F5 researches the efficacy of enterprise AI
F5, an application security vendor, recently conducted research into enterprise adoption of Artificial Intelligence (AI). They discovered that while enterprises are adopting AI, they face significant challenges in security, governance and scalability, with only 2 per cent considered highly ready. In its 2025 State of AI Application Strategy Report, F5 revealed 25 per cent of applications typically use AI, but many organisations lack the robust frameworks needed to scale it securely across operations. F5 stated highly AI-ready organisations integrate the technology extensively across their app portfolios. In contrast, low-readiness companies use AI in less than a quarter of their apps, typically in siloed or experimental settings. Moderately ready companies use AI in about 33 per cent of applications, with 70 per cent actively using generative models. On average, 25 per cent of apps use AI. F5 stated 71 per cent of organisations use AI to boost security, but only 31 per cent have deployed specific protections including firewalls. Data governance remains weak, with just 24 per cent practising continuous data labelling, increasing vulnerability to attacks. F5 noted hybrid cloud environments further complicate governance and expose workflows to added risks. Most enterprises employ multiple AI models, averaging three per organisation and combining paid models including GPT-4 with open-source alternatives including Meta Platforms' Llama, Mistral AI variants and Google's Gemma. F5 gathered insights from 650 global IT leaders and additional research with 150 AI strategists, representing organisations with at least $200 million in annual revenue. Source: Mobile World Live Image Credit: Stock Image
