International Business Machines Corp. (IBM) on Thursday revealed a cloud platform, specifically designed for telecom operators engaged in deploying 5G technology. The company has partnered with Samsung and Nokia for the new venture.
A cloud platform helps in performing network functions using software instead of hardware equipment that makes it more convenient for telecom carriers to rapidly build 5G networks at reduced costs, besides enabling them to deliver customized services to business customers.
The United States government has been urging big IT companies to work on 5G, a wireless technology that will unleash a massive ecosystem where networks will support communication needs for unlimited connected devices, in addition to speed improvements and enabling everything from autonomous vehicles to remote surgeries among many other useful applications.
Speaking at an interview, IBM’s SVP for Hybrid Cloud, Howard Boville said collaboration is the way forward as users will consume from multiple service providers in the market. He added that IBM will provide services to its telecom allies to run their networks, as well as help them in selling custom products to users.
IBM has been increasingly focusing on high-margin cloud business. As a part of its strategy, the company last year acquired Red Hat for $34 billion. The acquisition helped IBM in building cloud for telecom, and several of its clients are already testing it platform.
IBM is currently trading around $114.90, gaining more than 3 points in the mid-day trading Thursday. The stock touched a low price of $94 in March following the Covid-19 outbreak. However, it managed to recover some of its lost price in the subsequent months. Overall, IBM share price has dropped about 14 percent on year-to-date basis, and nearly 5 percent during the past 6 months. The company has a market value of $102.365 and a P/E ratio of 13.02.