Bengaluru: Global technology major IBM Corp and Mumbai-based Tech Mahindra Ltd have partnered to build an ecosystem worth $1 billion in revenue in the next three years.
The two companies will work on five strategic focus areas including 5G, automation, hybrid cloud, cyber security, data and artificial intelligence (AI). The partnership is a strategy to expand access to more clients thereby increasing the overall size of the market.
While 40% of the revenue will be driven by telco and 5G, powered by hybrid cloud, 60% of the revenue will be from other industries, said CP Gurnani, CEO and MD, Tech Mahindra.
“It is about driving a smaller share of a much bigger market as they bring in the innovation, capabilities, and expertise of all of us to solve problems for our clients,” said Arvind Krishna, CEO, IBM.
“Indian market is really vibrant. Remote delivery is going to offer Indian companies a great ability to expand their market share globally. That implies they have to think about their digitization infrastructure and that is an opportunity for all of us,” Krishna added.
The two companies will also co-invest in centres of excellence and innovation centres in India, south Asia, and the US.
As IBM is expected to spin-off its managed infrastructure services unit as a separate public company by the end of 2021, it is focused sharply on tapping the $1-trillion hybrid cloud opportunity as only 20-25% of the workload have actually moved to any form of cloud.
In the last six months, IBM has strengthened its long-term relationships with global system integrators in India and globally, especially with partners who are helping clients modernize workloads with Red Hat OpenShift for any cloud environment.
The global partnership between Tech Mahindra and IBM spans over two decades which has also resulted in the development of unique solutions by leveraging IBM blockchain, data and AI, and security capabilities.
