According to CNBC, IBM is losing Facebook’s “WhatsApp” as one of its cloud computing clients after Facebook took the decision of taking the hosting of the communications service in-house. The shares of International Business Machines have still maintained their position despite this negative piece of news.
Facebook Moving Whatsapp Off IBM Cloud, 5 Highlights
1. Facebook To Manage Cloud Computing In-house
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According to CNBC’s Jordan Novet, Facebook (FB) intends to move its WhatsApp communications software off IBM’s cloud computing facilities and take it to its own data center. Jordan cited a single unnamed source for this piece of news.
2. International Business Machines Loses One Of Its Top 5 Customer
Jordan Novet writes that this move would result in “IBM losing one of its top five public cloud customers”. When it comes to cloud computing, WhatsApp is one of IBM’s high-profile customers which lags behind the market leader Amazon Web Services, as well as Microsoft Azure.
3. IBM Acknowledges The Move
In a statement read on air by CNBC’s anchors, IBM seemed to have acknowledged the move. The confirmation came after the article. They said,
“We are proud of the role of IBM Cloud in their success. It is completely natural for Facebook to seek synergies across their business.”
4. Facebook Remains Quiet
While IBM acknowledged the move, Facebook did not respond to it immediately. The real reason for moving WhatsApp off of IBM’s cloud and onto its own servers has not been disclosed.
5. Whatsapp Messaging App Relies On More Than 700 High-End IBM Softlayer Servers
Novet cites multiple sources, who in turn quote an “off-the-record case study” produced by International Business Machines that details what’s involved for Big Blue in hosting WhatsApp. Novet Writes,
“Shows that WhatsApp runs atop more than 700 high-end servers split between data centers in San Jose and Washington.” He added “At one point Facebook was spending nearly $2 million per month on the IBM cloud, a second source said.”
IBM’s business would see rises and falls in different deals, reports say International Business Machines has signed three new large deals in recent weeks for its “infrastructure services” business, which provides “private cloud” computing to enterprise clients.
Date: June 8, 2017