IBM scored a key cloud deal that gives it more credibility in a market that CEO Ginni Rometty believes will be worth $1 trillion

IBM says it has signed a five-year, multi-million cloud, AI deal with Vodafone Idea, one of India's biggest telecom operators.

IBM will help Vodafone Idea build a hybrid cloud network with AI capabilities to better serve the telecom company's roughly 400 million customers, the tech giant said Friday. "They did not invest early enough," IDC analyst Deepak Mohan told Business Insider."It took time for them to get their message right."

Analyst Roger Kay of Endpoint Technologies Associates echoed this point, telling Business Insider:"The company is bringing to bear a lot of the capabilities it has been touting as the forward-looking businesses, where it wants to make its mark." Still, IBM faces a challenging road ahead in a highly-competitive market, he added:"Underlying it all, IBM is in a very undesirable place. It is building technology first and seeking application of its technology second, and it is heavily reliant on its existing brand to push its business forward."The Vodafone Idea deal also underscores the push toward more partnerships between telcos and tech companies.

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