IBM center to focus on core application migration to cloud

- Wednesday, March 16, 2011

IBM center to focus on core application migration to cloud

IBM's (NYSE: IBM) new technology campus in Peru will help support a client trend toward placing core programs - and not peripheral applications - in private clouds, IBM executives told BNamericas.

IBM on Wednesday unveiled its technology campus, which is located in Lima's San Isidro district. The new campus, together with the existing Campus Tecnológico de La Molina, has received a total of US$30mn in investments since 2004.

The new center will provide cloud computing, hosting and help desk services to public and private sector clients, but IBM Peru service executive Eduardo Sarmiento underscored the facility's focus on core applications.

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"The computing center is focused on providing cloud, hosting or application outsourcing for critical applications," he said, noting examples such as SAP (NYSE: SAP) ERP solutions, which include accounting, billing, production and human resources modules.

Last month, IBM and Peruvian fund for financing state business Fonafe announced a five-year service agreement worth US$9.7mn to bring cloud computing to government services in the country.

Local clients benefiting from the center include firms in vertical markets such as pharmaceuticals, retail and mining, but IBM is also leveraging its Peru facilities to serve clients in Ecuador and Chile, according to Sarmiento and IBM's general manager for Peru, Ecuador, Bolivia, Uruguay and Paraguay, Jaime García.

Future steps aimed at fanning cloud computing business in Peru include continued IT security expenditures, as well as human resources investments that will provide the basis for further evangelization activities.

Additional cloud drivers include economic growth, cost reduction and high availability.

Globally, IBM saw its net income for 2010 grow 10% last year, reaching US$14.8bn, while revenues during the same period increased 4% to US$99.9bn.