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IBM Wins Big Deal in India, Expands Software Portfolio Through Joint Venture

Strategic Insights

— 2 min read

International Business Machines (IBM) has secured a 10-year, multi-million dollar agreement with ElectraCard Services (ECS), a leading provider of software solutions for electronic payment systems in India. Under the terms of the agreement, IBM will provide technical support for ECS's disaster recovery infrastructure, enabling ECS to focus on core business while reducing capital expenditures. This deal is significant, as it demonstrates IBM's expertise in scalability and security, which is in line with the growth trends in e-commerce or online payments. Furthermore, the agreement highlights the increasing preference among consumers for transparent and flexible payment solutions.

Key Takeaways:

  • IBM has secured a 10-year, multi-million dollar agreement with ElectraCard Services (ECS) in India to provide technical support for ECS's disaster recovery infrastructure.
  • The agreement will enable ECS to focus on core business while reducing capital expenditures, highlighting IBM's expertise in scalability and security.
  • The growth trends in e-commerce or online payments indicate a shift in consumer preference towards more transparent and flexible payment solutions.
  • IBM has entered into a joint venture with five other tech giants, including ARM Holdings Plc, Samsung Electronics Co., Texas Instruments Inc., Freescale Semiconductor Inc., and ST-Ericsson, to form a non-profit company called Linaro.
  • The newly-formed company will facilitate the speedy development of Linux-based software compatible with ARM designs for mobile phones, tablet PCs, and other hybrid products.
  • This initiative is expected to be of significance to IBM, as the company will be able to take a larger share in the wireless market, increasing competition to tech giants like Microsoft Corp.
  • Recommendations and target prices from Zacks Equity Research are six-month time horizons.
  • The Zacks Rank continues to outperform the market by nearly a 3 to 1 margin.

Statistics:

  • IBM has secured a 10-year, multi-million dollar agreement with ElectraCard Services (ECS).
  • The agreement will enable ECS to reduce capital expenditures.
  • The growth trends in e-commerce or online payments indicate a shift in consumer preference towards more transparent and flexible payment solutions.
  • The newly-formed company, Linaro, will facilitate the speedy development of Linux-based software compatible with ARM designs for mobile phones, tablet PCs, and other hybrid products.
  • The Zacks Rank continues to outperform the market by nearly a 3 to 1 margin.
  • Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Sources:

  • Zacks.com Analyst Blog
  • IBM (http://www.ibm.com)
  • ElectraCard Services (http://www.ecs.co.in)
  • Zacks Equity Research (http://www.zacks.com/equity-research)
  • Linaro (http://www.linaro.org)
  • ARM Holdings Plc (http://www.arm.com)
  • Samsung Electronics Co. (http://www.samsung.com)
  • Texas Instruments Inc. (http://www.ti.com)
  • Freescale Semiconductor Inc. (http://www.freescale.com)
  • ST-Ericsson (http://www.stericsson.com)

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