IBM Introduces Upgraded On-Premise Data Storage Capacity

International Business Machines Corp. (NYSE:IBM) recently added features to its on-premise Cloud Object Storage System, making it further lucrative for customers. The newest incorporations include vaults meant for compliance data storage and a dispersal mode that enables easy scalability.

Per the norms of certain regulations like SEC 17a-4(f), companies have to store the unadulterated versions of some compliance data for a specific time period. IBM is introducing data storage vaults for these documents where all the requisites are met and the electronic records are in an indestructible format.

Simultaneously, the company announced the availability of a service that is configured to let companies get started with the IBM Cloud Object Storage System at a pretty small capacity such as 72 TB that will have lesser hardware requirements. The service will allow less-complicated scalability to larger configurations per the requirement. This will ensure optimized resource usage for both IBM and its client.

IBM’s Growth Prospects

IBM shares have lost 10.6% year to date, outperforming the industry’s 15.5% decline. We believe that the company has significant growth prospects in the cloud along with emerging technologies like Blockchain.

We note that the cloud segment presents significant potential for IBM. In recent times, its cloud based solutions continue have been adopted by the likes of Syniverse, State of Arizona, Codify Academy, Italian airport operator SEA and Germany-based leading automotive supplier Faurecia.

Apart from this, the unveiling of four new data centers and availability of cloud containers at Australian data centers are further tailwinds.

IBM was also recently awarded a $135 million contract by the U.S. Army's Logistics Support Activity (LOGSA) for providing cloud-based services. We believe all these will help the company to win a competitive edge against industry peers like Amazon.com Inc. (NASDAQ:AMZN) and Microsoft Corporation (NASDAQ:MSFT) .

International Business Machines Corporation Revenue (TTM)

International Business Machines Corporation Revenue (TTM) | International Business Machines Corporation Quote

Moreover, IBM is actively participating in advancement of Blockchain technology. Blockchain, which deals with secured data storage and transmission, is being adopted across multiple industries.

IBM’s bank guarantee deals with ANZ and Westpac and a multi-line insurance contract with American International Group (NYSE:AIG) and Standard Chartered (LON:STAN) PLC are some of the recent instances. IBM has also inked a deal with global food suppliersand another one with automobile manufacturer, ZF Friedrichshafen to enhance its Car e-Wallet technology.

Additionally, IBM is still a prominent name in the mainframe industry and recently shipped its first z14 mainframe model. The company also has a strong foothold in the retail analytics market as evident from its recent deal with Walgreens.

Zacks Rank

IBM currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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