IBM’s cloud revenue increased by almost a third


Last updated on May 1st, 2023 at 07:55 pm

IBM’s cloud revenue increased by almost a third

IBM has reported its first full quarter under new CEO Arvind Krishna, who was previously in charge of the cloud business. In this area, revenue increased by almost a third, but this did not save the company’s consolidated revenue from a 5.4% decline. Investors were expecting the worst, with IBM shares up 6%.


The two divisions of IBM, Global Business Services and Global Technology Services account for almost 56% of the corporation’s revenues, and the dynamics of financial indicators in the second quarter for them was negative: in the first case, revenue decreased by 7%, in the second – by 8%. Hardware solutions and operating systems brought in 6% more than a year earlier, with a two percent increase in storage revenue. Financial and leasing services cut revenue by a quarter at once.

In other words, IBM customers in the second quarter preferred not to spend money on the company’s services, but actively used cloud solutions, which allowed increasing revenue in the corresponding direction by 30%. Division of Red Hat brought in 17% more funds than a year-earlier – $ 867 million for the quarter. The fall in consolidated revenue by 5.4% to $ 18.12 billion did not confuse investors as they expected the worst. IBM’s share price eventually rose 6% after a steady decline since the beginning of the year.

The company’s management declined to give a forecast for annual revenue, which it promised to announce at the previous quarterly event. According to Arvind Krishna, now the economic situation in different regions of the planet is very heterogeneous. If Asia and Europe by June showed an increase in demand for services and products of IBM, then both Americas are still far from this. The consequences of the pandemic will affect the company’s business longer than expected in the spring. IBM consoles itself that corporate clients are showing greater resilience to economic challenges.

Also Read:   IBM Report Published for 2020 First Quarter (Q1 2020 Report of IBM)


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