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IBM and Tech Mahindra on Tuesday said they are deepening their collaboration, especially in areas like 5G, hybrid cloud, automation and cybersecurity, as the two tech giants work towards building a billion dollar ecosystem over the next three years.

Some of the key initiatives underway include launch of Tech Mahindra’s Blue Marble on IBM Cloud for Telecommunications to drive 5G momentum, collaboration to grow cybersecurity business with IBM Cloud Pak for Security, and strengthening and expanding portfolio through cloud-based offerings.

The partnership will also see co-creation and co-innovation through innovation labs and Centres of Excellence as the two companies strengthen their partnership to pursue the $ 1 trillion Hybrid Cloud market opportunity.

“We see the opportunity in three things. In the near term, we see the opportunity around hybrid cloud and AI. And then in the medium to longer term, we see an opportunity in quantum,” IBM Chairman and CEO Arvind Krishna told reporters during a virtual briefing.

He said hybrid cloud is the destination for most enterprises and governments as these organisations continue to use a mix of multiple public clouds and on-premise infrastructure for various reasons like economics and regulations.

“That (hybrid cloud) opportunity is over a trillion dollars for the industry…artificial intelligence (AI) will unlock between $ 14-16 trillion of global productivity,” he said, adding that the partnership with Tech Mahindra brings in a “potential revenue of a billion dollars for each of us”.

About 40 per cent of the revenue will be driven by Telco and 5G, powered by Hybrid Cloud; while 60 percent will be driven by other industries. The five strategic focus areas include 5G, automation, hybrid cloud, cyber security, data and AI.

We will be adding a lot of value to each other as we build almost a billion-dollar ecosystem for each other. We are building this on the success of the customers by solving some of their critical challenges, Tech Mahindra CEO and Managing Director, C P Gurnani said.

He added that the pandemic has accelerated adoption of technology.

Krishna noted that in 2021, IBM is doubling down to elevate its ecosystem through its new go-to-market model, making it easier for partners to work with IBM and make the transition to a multi, hybrid cloud platform seamless for clients. Through this approach, IBM is looking at driving a multi-billion dollar portfolio with its ecosystem partners over the next three years.

India has a significant advantage and IBM India will continue to be at the forefront, driving innovation that is made in India, for India and the world, he added.

“We have an incredible focus on India. First, India as a source of great talent, and the proof of that is our employee base in India, and how much service, and intellectual property they provide. And with a lot of collaboration, with a lot of the regulations in India that promote the export of both software and services from India,” he said.

Krishna said IBM is focussed on the India market itself, and services top private sector banks and public banks, telecom services providers, industries and it is on a “path to expand”.

“I think the Indian market is really vibrant…I really believe that remote delivery is going to offer Indian companies a great ability to expand their market share globally. But that implies that they all have to think about what is their digitalisation infrastructure and that is an opportunity for all of us to go in and help them expand,” he added.

The global partnership between Tech Mahindra and IBM spans over two decades. The companies have developed unique solutions and accelerators by leveraging IBM Blockchain, Data and AI and Security capabilities.

In April 2020, Tech Mahindra had joined IBM hybrid cloud ecosystem with the aim to help customers transform operations by enabling them to migrate core business applications to the IBM Cloud. In July, Tech Mahindra launched a new digital platform that leverages IBM blockchain for the global media and entertainment industry to enable production houses and content creators to track revenue, royalty payments, manage rights and address content piracy.