Johannesburg, 27 Feb 2007
IBM's local software division is gearing up for a successful year on the back of a push towards service-oriented architecture (SOA) and open standards.
The company's local software division exited 2006 on a high, says Zoaib Hoosen, IBM's south and central Africa software executive. He says the division was the top-performing unit locally. "I think we rewrote every record we ever had. I can see us doing that again this year."
Hoosen says a surge in software sales generally follows a surge in hardware sales, and this follow-on kicked in last year, indicating a new cycle.
He notes that companies are moving towards SOA with quick implementation times to give them greater speed and flexibility. "There is pressure to innovate faster," he says of companies' urgency in reducing the time-to-market of offerings.
Growth sectors
In 2007, IBM expects to see growth in software products around the need to store, secure and access information, as well as products offering governance. "Information is going to sky-rocket for us."
Recent acquisitions - FileNet being one of 40 in the last four years - will also be exploited to gain more sales.
Sectors Hoosen expects to see grow include the public sector, banking and smaller enterprises. He points to the worldwide trend towards stricter corporate governance and the need to manage information better as a result.
The company will focus on large projects in government, banking and other enterprises, as well as push further into the small and medium market. SOA, he says, will also open other doors for the firm, allowing it to increase penetration of other bolt-on applications. So far, telecommunication companies have been among early adopters of SOA, with interest shown from the public sector and smaller companies.
Hoosen says the public sector is expected to increase spending on IT as government has budgeted funds available for spending. In addition, national elections are on the horizon and the country is speeding up for the 2010 Soccer World Cup. "The catalysts are available in that sector to stimulate... and get growing."
IBM will continue to invest in SOA, as Hoosen sees greater future demand. He adds the company will also boost skills, and will follow a focused approach in transferring skills from European offices to South African staff. Hoosen says the staff complement in his division will likely grow by 10% this year.
Related story:
IBM SA delivers bumper year
Share