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IBM’s Strategic Imperatives Are Bright Spot in Recent Quarter


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IBM reported revenue of $20.2 billion in the second-quarter 2016, reflecting 12% growth over the same quarter a year ago. The company cites its burgeoning cloud business as the main driver of this growth.

Overall systems (systems hardware and operating systems software) revenue was $2.0 billion, down 23.2% from a year ago. Global Financing (including financing and used equipment sales) saw revenue of $424 million, down 11.3%.

Second-quarter revenue from the company’s “strategic imperatives” – cloud, analytics and engagement – increased 12% year-to-year.  Cloud revenue (public, private and hybrid) for the quarter increased 30%.  The annual run rate for cloud as-a-service revenue - a subset of total cloud revenue - increased to $6.7 billion from $4.5 billion in the second quarter of 2015.  Revenue from analytics increased 5%. Revenue from mobile increased 43%, and revenue from security increased 18%.

IBM’s “cognitive solutions” (including solutions software and transaction processing software) saw revenue of $4.7 billion, up 3.5% from last year. Cloud revenue within the segment grew 54%.  Solutions software revenue grew, led by analytics (including Watson) and security.

Global Business Services (includes consulting, global process services, application management) saw revenue of $4.3 billion, down 2%. Strategic imperatives revenue within the segment was up 14%.

Technology services and cloud platforms (including infrastructure services, technical support services, integration software) saw revenue of $8.9 billion, essentially flat from last year. Growth of 35% in strategic imperatives revenue within the segment was driven by strong hybrid cloud infrastructure services performance.

More information is available at www.ibm.com.


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