IBM and Bharti Airtel expand cloud alliance to accelerate AI ambitions in India

IBM has strengthened its partnership with Bharti Airtel to enhance Airtel Cloud’s AI capabilities, expand data security, and increase cloud regions across India, marking a significant step in the country’s digital transformation.

IBM has expanded its strategic alliance with Bharti Airtel to enhance Airtel Cloud’s AI capabilities and broaden its market presence in India. This partnership enables Airtel Cloud customers to access IBM’s advanced Power systems as-a-service, including the latest AI-optimized Power11 autonomous servers, which are designed to support mission-critical workloads. Targeted sectors for the initiative include regulated industries such as banking, healthcare, and government, where compliance and data security are paramount. Airtel aims to increase the number of its cloud availability zones in India from four to ten, alongside launching new multi-zone regions in Mumbai and Chennai, enhancing data sovereignty, security, and operational resilience.

The collaboration merges Airtel’s growing cloud infrastructure with IBM’s AI and hybrid cloud technologies, enabling enterprises to scale AI workloads efficiently. Through this alliance, Airtel Cloud customers gain access not only to IBM’s Power11 servers but also to the broader Power systems portfolio, supporting various enterprise workloads including IBM Power AIX, IBM i, Linux, and SAP Cloud ERP. This development positions Airtel to meet the rising demand for cloud computing services driven by AI advancements and stringent data storage regulations in India.

IBM, founded in 1911, is one of the longest-standing technology enterprises globally, with a strong footprint in software, IT consulting, and hardware. The company’s products and services, including its Red Hat and watsonx offerings, manage crucial data workloads in numerous sectors worldwide. IBM’s strategic moves, such as this alliance with Bharti Airtel, reflect its commitment to expanding influence in emerging markets and sectors that demand high levels of technological sophistication.

From a financial standpoint, IBM remains solid despite some market valuation challenges. With a market capitalisation exceeding $261 billion and an operating margin of 17.07%, the company demonstrates effective cost management. IBM’s trailing twelve-month revenue stands at around $64 billion, showing steady but modest growth with a three-year revenue growth rate of 1.8%. Its debt-to-equity ratio of 2.46 indicates leverage, though a healthy interest coverage ratio of 6.01 suggests it can comfortably service its debt. The Altman Z-Score of 3.28 further indicates strong financial health and a low risk of bankruptcy, notwithstanding a relatively high price-to-earnings ratio of 45.63 and a price-to-sales ratio of 4.12, which suggest a premium market valuation. Analysts currently recommend a hold for IBM shares, with a target price around $276.85.

The partnership benefits from Airtel’s ambition to solidify its role as a leading cloud services provider in India amid increasing AI adoption and regulatory requirements. The addition of IBM’s Power11 servers and the expansion of Airtel’s multi-zone cloud regions are expected to enhance the performance, security, and compliance capabilities of Airtel Cloud, especially for enterprise customers handling sensitive data.

This collaboration underscores a trend where telecommunications providers are leveraging partnerships with major technology companies to accelerate their cloud transformation and AI integration. For IBM, this alliance represents a strategic step to deepen its presence in the fast-growing Indian market while demonstrating the capabilities of its AI-ready hybrid cloud infrastructure.

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Source: Noah Wire Services