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. In 2019, the company generated revenue from operations in six reportable segments: Cloud and Cognitive Software, Global Business Services, Global Financing, Systems, Global Technology Services and Other. As of Q2 2019, the revenue from different reportable segments came in at. And let’s look into IBM Revenue by Business Segment data here.
Revenue (in millions USD)
|Cloud & Cognitive Software||5645||29.46%|
|Global Business Services||4155||21.68%|
|Global Technology Services||6837||35.68%|
Cloud & Cognitive Software revenue of $5,645 million increased 3.2 percent as reported and 5 percent adjusted for currency in the second quarter of 2019 compared to the prior year. The diverse portfolio of software offerings allows clients to securely deploy, run and manage data and applications on both private and public clouds as well as on-premises.
Global Business Services segment reported a 0.5% increase in revenue for the second quarter of 2019 compared to the prior year. This growth was primarily driven by engagement with clients who are planning to begin their digital reinvention journey as cloud and cognitive enterprises.
Global Technology Services segment reported a 6.7% decline in revenue for the second quarter of 2019 compared to the prior year. This could be attributed to the company’s actions focused on investments in high-value segments of the IT market.
Global Financing facilitates the company’s clients’ acquisition of IT systems, software and services by providing financing solutions in the areas where IBM has expertise, while generating decent returns on equity. This segment reported a 11% decline in external revenue due to a decrease in external used equipment sales and a decrease in external financing.
Systems segment reported a 19.5 per cent decline in revenue for the second quarter of 2019 compared to the prior year. This consists of Systems Hardware, IBM Z, Power systems, Storage systems and Operating Systems software. The declining revenue was driven by IBM Z (due to product cycle dynamics) and Storage Systems (due to decline in high-end storage and pricing pressures).
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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