IBM has announced that it has an agreement to acquire Nordcloud, a European leader in cloud implementation, application transformation and managed services. The goal here is to further advance IBM’s cloud migration and transformation capabilities, an important aspect of its hybrid cloud platform growth strategy. IBM needs to do that  to capture value in one of the most important domains of technology at the moment: cloud & AI. IBM’s stock has lagged former peers, and it needs to unlock new playbooks for a new outcome.

This acquisition is significant after IBM blew the integration of Softlayer a few years ago. IBM was clearly ahead  or at par with other cloud players like Amazon, Microsoft and Google through Softlayer, but was quickly outcompeted due to conflicts which created an innovation hangover when a company decides to protect a one oasis. The IBM infrastructure business made it impossible for IBM to redesign its business as it did not want to kill the unit that was generating a huge revenue in the firm. Yes, cloud was about doing away with infrastructure, and IBM was making huge money from infrastructure. 

This is similar to the Microsoft innovation handover with Windows. For years, Microsoft was built around Windows, affecting innovation across all units of the company; Steve Balmer, Microsoft former boss, led that strategic philosophy of Windows-first. But when the new boss, Satya Nadella,  came about 6 years ago, he shifted from Windows-first, and built a new mantra of anywhere-first. Within years, the market cap of Microsoft quadrupled, as he unlocked Microsoft products and put them anywhere people could buy them, including in Apple and Google platforms. Today, Microsoft stock has grown from $366 billion to excess of $1.66 trillion in just under 6 years.

The new playbook from IBM has a promising future. Why? IBM has already put its infrastructure business in the market. So, that conflict and hangover are gone. With that, Nordcloud could seed that future IBM is looking for in this new age of cloud and AI. Expect the machine to rise.

Part of the press release

Headquartered in Helsinki, Finland with offices in 10 European countries, Nordcloud’s mission is to help businesses become stronger, fitter and more agile with cloud. From Gartner’s Magic Quadrant to The Financial Times’ league table of fast-growing European companies, Nordcloud is recognized as a leader in public cloud services. Over the past 10 years, the privately held company has grown into a pan-European leader in cloud transformation services. It is one of the few providers triple certified in Amazon Web Services, Google Cloud Platform and Microsoft Azure.

“Our clients are increasingly taking a more holistic approach to application modernization that allows them to operate across a traditional IT environment, private cloud and public clouds,” said John Granger, Senior Vice President, Cloud Application Innovation and Chief Operating Officer, IBM Global Business Services. “IBM’s acquisition of Nordcloud adds the kind of deep expertise that will drive our clients’ digital transformations as well as support the further adoption of IBM’s hybrid cloud platform. Nordcloud’s cloud-native tools, methodologies and talent send a strong signal that IBM is committed to deliver our clients’ successful journey to cloud.”

“IBM’s hybrid cloud approach is very complementary with our cloud-native approach to helping clients migrate, manage and modernize in the cloud,” said Fernando Herrera, Chairman and Founder, Nordcloud. “As an experienced partner in today’s cloud ecosystems, we work with all of the public cloud providers for the good of our clients throughout Europe. I am very excited to embrace IBM’s open innovation mindset and help grow its global footprint.”

Leading IT industry analysts estimate the market for cloud professional services will exceed $200 billion by 2024.1 IBM’s open and flexible approach to advising, building, moving and managing clients’ hybrid environments gives enterprises the freedom to choose from multiple providers to best meet their business and IT needs. This acquisition is the latest example of how IBM is expanding the breadth and depth of its hybrid cloud offerings to manage complex integrations – of technologies, people and processes.

Following the close of the transaction, Nordcloud will become an IBM Company. Financial details were not disclosed. The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2021.

Updated Dec 21 2020: The Nigerian Senate has passed the appropriation bill of N13.588 trillion (about $35 billion), which is N505 billion higher than the proposed N13.082 trillion Buhari presented to the Senate in October for 2021 budget. The Senate disclosed here.

Nigeria’s president, Muhammadu Buhari, has presented the 2021 national budget estimate to the National Assembly. The proposed expenditure is N13.08 trillion (about $34 billion). The price of crude oil is pegged at $40 per barrel with a daily production estimate of 1.86 million barrels. Recurrent expenditure is N5.65 trillion; personnel cost is N3.76 trillion, and debt service is N3.12 trillion. If you run the math, about 25% of the budget goes to service debts!

Selected ministries and allocations:

• Ministry of Defence –  N840.56 billion
• Ministry of Interior –  N227.02 billion
• Ministry of Police Affairs –  N441.39 billion 
• Ministry of education – N545.10
• Ministry of health- N380.21 billion

Special Allocations

• North East Development Commission – N29.7 billion
• Nigerian Judicial Council – N110 billion
• Universal Basic Education Commission – N70.05 billion 
• INEC – N40 billion
• Public Complaints Commission – N5.20 billion;
• Human Rights Commission – N3.00 billion; 
• Basic Health Care Provision Fund – N35.03 billion.

Key capital spending allocations:

• a. Power – N198 billion 
• b. Works and Housing – N404 billion.
• c. Transportation – N256 billion.
• d. Defence – N121 billion.
• e. Agriculture and Rural Development – N110 billion.
• f. Water Resources – N153 billion.
• g. Industry, Trade and Investment – N51 billion.
• h. Education – N127 billion.
• i. Universal Basic Education Commission – N70 billion.
• j. Health – N132 billion.
• k. Zonal Intervention Projects – N100 billion.
• l. Niger Delta Development Commission – N64 billion.

The National Assembly will later work on the finance bill when ready, and will harmonize for passage. The president will now sign into law. 

Data from Premium Times

Tekedia members now spend an average of about an hour (53 minutes) every day co-learning. Like I have noted, we achieve close to 87% completion on our academic programs within the stipulated time. Extending the time by extra 2 months, we hit close to 92%. Our members come and actually get in the mindset of learning. We have seen some spending 4 hours studying.

We are ranked well globally by Amazon’s Alexa, and when you have thousands spending one hour co-learning on a platform, you will agree that the platform has value.  

Last week, the top course downloads were in Finance and Capital Markets. “Investing and Fundraising” by Victor Ndukauba, Deputy Managing Director of Afrinvest West Africa, and “Capital Market Operations” by Azeez Lawal, CEO of  TrustBanc Capital, spiked. 

People, learn from the best here!

Nigeria extends the deadline for telcos to block SIM cards with no National Id Number (NIN) to Feb 2021. No one believed that the previously planned two weeks would do it. So, it is not a surprise that it is being extended to Feb 2021. Yet, the original model was 6 months. I am sure when we get to Feb 2021, the government will extend it again since this cannot be done in three months. 

Good progress generally by NIMC: we need to have this done for Nigeria if we ever hope to unlock the credit economy in the nation.

The full press release.

NIN: Options for Nigeria Instead of Blocking Phone Lines in 2 Weeks [Video]

There is a change in the management of Union Bank Nigeria Plc; Emeka Emuwa retires and Emeka Okonkwo will take over on March 31 2021, pending the customary approval from the Central Bank of Nigeria.

More from the press release

The Board of Union Bank Nigeria Plc announces today that, after eight years leading the Bank, its Chief Executive Officer, Emeka Emuwa, has communicated his decision to retire from the Bank and his role as CEO on March 31, 2021. Emeka Emuwa joined Union Bank in November 2012, following a US$500 million investment by Union Global Partners, with a mandate to transform and restore one of Nigeria’s oldest
institutions back to its rightful position as a respected provider of financial services.

With his imminent departure, the Board has appointed Emeka Okonkwo, an Executive Director currently leading the Bank‘s Corporate Banking business, to succeed him. The appointment is subject to the approval of the Central Bank of Nigeria.

Prior to joining Union Bank, Emeka Emuwa led a distinguished 25-year career at Citibank. Following several senior roles in Nigeria and across Africa, he became the first Nigerian to be named Country Officer and Managing Director of Citibank Nigeria. On his retirement, Emeka Emuwa will also step down from the Board of Union Bank. Union Bank’s Chair, Beatrice Hamza Bassey, said;

Emeka Okonkwo is a seasoned banker with 30 years of experience. He joined Union Bank in 2013 as an Executive Director to lead the Corporate Banking and Treasury business. As the Bank embarked on its transformation, he was responsible for rebuilding the business and strategically positioning Union Bank for success in the Corporate Banking space.

Mr. Okonkwo began his career at Citibank Nigeria where he rose from officer level to become Executive Director in charge of Commercial Banking and Global Subsidiaries in 2009. At Citibank, he worked across various disciplines including Corporate Finance, Credit Risk Management, Marketing, Treasury and Strategic Management in Nigeria and London.

Prior to joining Union Bank, he was the Head of the Corporate and Investment Banking Division in Citibank Bangladesh. Emeka Okonkwo has a bachelor’s degree in Civil Engineering from the University of Nigeria,
Nsukka; an MSc in Construction Management from the University of Lagos and an MBA from Warwick Business School, UK.