IBM: Revenue by Product (2020)

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This statistic highlights IBM Revenue by product data from the first quarter of 2016 (Q1 2016) to the last quarter of 2019
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International Business Machines Corporation (IBM) is a US based information technology company producing and selling computer hardware, middleware and software. It also provides hosting and consulting services in fields such as nanotechnology, mainframe computers and others. The underlying business strategy is focusing on higher value and more profitable markets. Its major competitors include HP Inc., Dell Inc., Hyland Software Inc., Zeta Global, Microsoft Corporation to name a few. As of Q2 2019, the revenue from different products came in at. And let’s look into IBM Revenue by Product data here.

IBM Revenue by product

Products

Revenue (in millions USD)

Revenue Contribution

Cognitive Applications 1454 7.59%
Cloud & Data Platforms 2173 11.34%
Transaction Processing Platforms 2018 10.53%
Consulting 1978 10.32%
Application Management 1919 10.02%
Global Process Services 258 1.35%
Infrastructure and Cloud Services 5174 27.00%
Technology Support Services 1663 8.68%
Systems Hardware 1328 6.93%
Operating Systems Software 425 2.22%
Global Financing 351 1.83%
Other Revenue 420 2.19%
Total 19161 100.00%

 

The Cloud and Cognitive Software business segment consists of Cognitive Applications, Cloud & Data Platforms and Transaction Processing Platforms as the major products. All these products reported a positive change in revenue for the second quarter of 2019 as compared to the same period in 2018. Cognitive Applications includes software addressing vertical and domain-specific solutions in areas such as health, IOT solutions, with AI as the medium. 

The Global Business Services business segments comprises of Consulting, Global Process Services and Application Management as the major products. All these products reported a revenue growth except for Application Management which reported a 3.1% decline in revenue. Growth was primarily driven by engagement with clients as they strive to become cloud and cognitive enterprises.

The Global Technology Services segment consists of Infrastructure and Cloud Services and Technology Support Services as the key products. All the products reported a decline in revenue primarily due to a shift in the company’s focus to investments in higher-value segments of the IT market.

The Systems segment consists of Systems Hardware and Operating Systems Software as the primary products of which the former reported a 24.4% decline in revenue while the latter reported a 1% revenue growth compared to the same period in 2018. This could be attributed to changes in product cycle dynamics.

Company Overview

IBM Corporation, headquartered in Armonk, New York, US, is a blue-chip company included in the Dow Jones Industrial Average and publicly traded on the New York Stock Exchange as IBM.  The company, serving enterprises of all sizes, creates value for its clients by providing integrated solutions and a comprehensive portfolio of products. 

IBM’s strategy is wholly focused on the needs of its clients. It enables clients to harness the power of their data through technologies like AI, analytics and blockchain. Most of the company’s clients are leaders in their industries- financial services institutions, airlines and others.

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