According to Brandon Butler at Network World, “IBM has informed its customers that it will be phasing out its SmartCloud Enterprise cloud computing platform and is offering free migration of workloads to SoftLayer’s cloud, which IBM recently purchased.”
An IBM spokesperson confirmed the news Thursday, and said that it has been part of the plan to migrate customers over to that platform since IBM acquired SoftLayer. But today is the first time IBM has publicly acknowledged that plan.
This is not unexpected, but it is confusing to those who have been following SmartCloud Enterprise before IBM pulls this switcheroo. The question is, should they accept SoftLayer, or, will IBM purchase another company and then peddle that technology instead?
IBM is in some real trouble here. Their core business is shrinking relative to market growth, and they have no chance to build the cloud computing business fast enough to make up the difference. Thus, they will be trying everything and anything to avoid the continued contraction of their market share, as the market changes to cloud computing.