Though the acquisition of Red Hat is by no means a guaranteed win for the Armonk, N.Y.-based computing corporation that has had more downs than ups over the five years, it seems to be a better bet for “Big Blue” than an artificial intelligence platform that was always more hype than reality.
Indeed, commentators are already noting that this may be a case where IBM lastly hangs up the Watson hat and returns to the enterprise software and services business that has always been its core competency( albeit one that has been weighted far better heavily on consulting services — to the detriment of the company’s business ).
Also read as IBM taps out on Watson as its raise locomotive and returns to basics ie fiscal engineering and deployment https :// t.co/ nD7gHyYhQf
— Sunil Rawat (@ _sunilrawat) October 28, 2018
Watson, the business discord concentrate on neural networks whose public affirms were always more market than actually market-driven, has not performed as well as IBM had hoped and investors were “losing ones” patience.
Critics — including psychoanalysts at the asset bank Jefferies( as early as one year ago) — were skeptical of Watson’s ability to deliver IBM from its business woes.
As we wrote at the time 😛 TAGEND
Jefferies drags from an audit of such partnerships between IBM Watson and MD Anderson as a case study for IBM’s broader difficulties scaling Watson. MD Anderson cut its ties with IBM after consuming $60 million on a Watson project that was ultimately deemed, “not ready for human investigational or clinical use.”
The MD Anderson nightmare doesn’t stand on its own. I regularly hear from startup founders in the AI space that their own financial services and biotech purchasers have had similar suffers working with IBM.
The narrative isn’t an expression of the results of any single malfunction, but preferably research results of overhyped marketing, shortfalls in operating with deep learning and GPUs and intensive data readying demands.
That’s not the only hardship IBM has had with Watson’s healthcare develops. Earlier this year, the online medical publication Stat reported that Watson was handing clinicians to recommend cancer treatments “thats been”” unsafe and mistaken” — based on the training data it had received from the company’s own engineers and doctors at Sloan-Kettering who were working with the technology.
All of these woes were reflected in the company’s latest earnings bawl where it reported falling incomes mainly from the Cognitive Solutions business, which includes Watson’s artificial intelligence and supercomputing assistances. Though IBM premier financial officer pointed to “mid-to-high” single toe growth from Watson’s health business in the quarter, transaction processing application business fell by 8% and the company’s suite of hosted application assistances is mostly an afterthought for business gravitating to Microsoft, Alphabet, and Amazon for cloud services.
To be sure, Watson is only one of the segments that IBM had been hoping to tap for its own future rise; and while it was a huge investment orbit for the company, the company ever had its attentions partly fastened on the gloom calculating context as it looked for the regions of growth.
It’s this area of cloud calculating where IBM hopes that Red Hat can help it gain ground.
“The acquisition of Red Hat is a game-changer. It changes everything about the gloom market, ” said Ginni Rometty, IBM Chairman, President and Chief Executive Officer, in the following statement announcing their purchases. “IBM is increasingly becoming the world’s number-one hybrid cloud provider, offering companies the only open cloud solution that will unlock the full value of the gloom for their businesses.”
The acquisition too sets an incredible amount of selling supremacy behind Red Hat’s many open generator services business — passing all of those IBM project managers and consultants brand-new projects to pitch and perhaps juicing open root software adoption a bit more aggressively in the enterprise.
As Red Hat chief executive Jim Whitehurst told TheStreet in September ,” The large-hearted secular driver of Linux is that large-hearted data workloads run on Linux. AI workloads run on Linux. DevOps and those programmes, almost exclusively Linux ,” he said.” So much of the net new workloads that are being built have an attraction for Linux .”