IBM’s investment follows notable other commitments by U.S. technology firms to the U.K. Last week, Google confirmed its plans to build a new London headquarters and generate 3,000 jobs. And on Monday, Facebook announced it would be boosting its U.K. headcount by 500.
Under chief executive Ginni Rometty, IBM has migrated toward cloud-based services offering users big data analytics tools and artificial intelligence (AI) through its machine learning platform known as Watson. IBM said cloud revenue jumped 44 percent in the third quarter of 2016.
Amazon Web Services (AWS) – the e-commerce giant’s cloud business – accounts for 45 percent of the worldwide Infrastructure as a Service (IaaS) market, eclipsing the combined share of Microsoft, IBM and Google, according to Synergy Research. IaaS is a form of cloud computing, which Amazon helped to create, that provides virtual computing resources online for the public. Amazon also leads in the Platform as a Service (PaaS) market which refers to cloud platforms that developers can build applications on top of.
However, IBM is ahead in the managed private cloud market, according to Synergy Research, which is cloud services dedicated to a single organization rather than public.
But IBM is facing stiff competition from the likes of Microsoft, Google and even Alibaba. The latter announced on Monday that it is planning to launchfour new data centers across the world.