Through a partnership with China-based 21Vianet Group (VNET +0.5%), IBM (IBM +0.4%) intends to bring blockchain, IoT and advanced data services to its Bluemix cloud platform. Opportunities in the country's manufacturing and financial services industries along with those among enterprise networks and startups are highlighted.
IBM: "Today’s launch of blockchain and our IoT platform through the IBM Cloud is a tremendous boon for Chinese companies. Providing the infrastructure of Bluemix, combined with these latest technologies from both IBM and a growing roster of partners and Chinese service providers, will equip our country’s developers with the set of tools they need to fuel more intelligent and advanced innovations across China’s fastest-growing industries, including manufacturing and financial services.”
Further, IBM and Cisco Systems additionally expand an existing global partnership to offer real-time data analytics services to Chinese companies managing remote operations (i.e. oil rigs, factories, mines, shipping).
IBM had partnered with 21Vianet last October through a Bluemix access/infrastructure swap. Today's arrangement looks to expand the Bluemix ecosystem in China even further as the country's growing population of developers warrants increased focus on providing access to advanced cloud technologies.
Downgrading to Underweight with $5.60 price target (reduced from $21), JPMorgan notes full-year guidance is very weak, implying 1% downside to vStreet revenue estimates, and 32% downside to EBITDA estimates.
Credit Suisse suspends coverage due to a lack of transparency over the business model.