AS PART of the deal, IBM will serve as the primary cloud provider for AT&T Business and will help manage AT&T’s hybrid cloud infrastructure. To help facilitate the cloud migration, IBM will help modernize AT&T Business Solutions’ internal software applications. AT&T Business will continue using Red Hat’s open source platform to manage workloads associated with its internal applications.
The deal comes after IBM closed its $34 billion acquisition of Red Hat. The acquisition is part of IBM’s strategy to focus its cloud business on hybrid deployments and multi-cloud management.
As IBM’s primary provider of software-defined networking, AT&T says it will help IBM enhance its networking solutions with 5G, edge computing, and IOT. AT&T Business is already IBM’s strategic global networking provider.
The two companies also specifically said they will collaborate on edge computing platforms. IBM has pulled in significant business from telcos modernizing their networks. Eight of the 10 largest mobile operators are using IBM Services. Earlier this year, Vodafone Idea Limited, India’s largest telecom operator, signed a five-year, multi-million deal with IBM to modernize and consolidate its IT infrastructure.
IBM Security announced the results of its annual study examining the financial impact of data breaches on organizations. According to the report, the cost of a data breach has risen 12% over the past 5 years1 and now costs $3.92 million on average. These rising expenses are representative of the multiyear financial impact of breaches, increased regulation and the complex process of resolving criminal attacks.
The financial consequences of a data breach can be particularly acute for small and midsize businesses. In the study, companies with less than 500 employees suffered losses of more than $2.5 million on average – a potentially crippling amount for small businesses, which typically earn $50 million or less in annual revenue.
For the first time this year, the report also examined the longtail financial impact of a data breach, finding that the effects of a data breach are felt for years. While an average of 67% of data breach costs were realized within the first year after a breach, 22% accrued in the second year and another 11% accumulated more than two years after a breach. The longtail costs were higher in the second and third years for organizations in highly-regulated environments, such as healthcare, financial services, energy and pharmaceuticals.
“Cybercrime represents big money for cybercriminals, and unfortunately that equates to significant losses for businesses,” said Wendi Whitmore, Global Lead for IBM X-Force Incident Response and Intelligence Services. “With organizations facing the loss or theft of over 11.7 billion records in the past 3 years alone, companies need to be aware of the full financial impact that a data breach can have on their bottom line –and focus on how they can reduce these costs.”
Malicious data breaches cost companies in the study $4.45 million on average – over $1 million more than those originating from accidental causes such as system glitch and human error. These breaches are a growing threat, as the percentage of malicious or criminal attacks as the root cause of data breaches in the report crept up from 42% to 51% over the past six years of the study. — Internet
