{"id":40750,"date":"2020-04-21T09:30:15","date_gmt":"2020-04-21T09:30:15","guid":{"rendered":"http:\/\/icloud.pe\/blog\/?guid=44c6d1294c7dbfc66f3658db0e0adec7"},"modified":"2020-04-21T09:30:15","modified_gmt":"2020-04-21T09:30:15","slug":"ibm-cloud-revenues-up-despite-coronavirus-uncertainty","status":"publish","type":"post","link":"https:\/\/icloud.pe\/blog\/ibm-cloud-revenues-up-despite-coronavirus-uncertainty\/","title":{"rendered":"IBM cloud revenues up despite coronavirus uncertainty"},"content":{"rendered":"


\n Bobby Hellard<\/a><\/span>
\n <\/span><\/p>\n

\n
\n
21 Apr, 2020<\/span><\/div>\n<\/p><\/div>\n<\/div>\n

\n<\/a><\/p>\n

\n

IBM is withdrawing its full-year guidance for 2020 due to the current coronavirus<\/a> pandemic and will reassess its position when there is more economic clarity.<\/p>\n

The company’s decision comes after reporting a 3.4% drop in revenue for the first quarter of 2020.<\/p>\n

Disruption from COVID-19 is the first real test of Arvind Krishna’s leadership since taking over from Ginni Rometty as CEO<\/a>. The tech giant reported revenues of $21.8 billion<\/a> (\u00a316.7 billion) shortly before Rometty announced her retirement. On Monday it reported $17.6 billion (14.2 billion) for the first three months of 2020.<\/p>\n

The company said it will reassess this position based on “the clarity of the macroeconomic recovery at the end of the second quarter”.<\/p>\n

Despite the drop, other elements of IBM’s business performed well. The firm’s cloud and cognitive software saw a 5% increase, with total cloud revenue up 19% to $5.4 billion (\u00a34.4 billion). Similarly, Red Hat revenue also saw an increase of 18%.<\/p>\n

“I believe that what we are going through today, with the shift to remote work, automation … will accelerate our client’s shift to hybrid cloud,” Krishna said on a call with Wall Street analysts Monday. “This gives me immense confidence in our future.”<\/p>\n

Since its $43 billion acquisition of Red Hat<\/a>, and the subsequent shift in focus towards hybrid cloud, IBM has seen continued growth in that particular market.<\/p>\n

After five consecutive quarters of declining revenue, the final three months of 2019 saw a 0.1 increase largely based on its cloud success. Total cloud revenue for the final quarter of 2019 hit $6.8 billion (\u00a35.5 billion), a rise of 21%.<\/p>\n

In the grand scheme of things, IBM is still far behind the likes of AWS<\/a> and Microsoft<\/a> for cloud computing revenues, but it is one of the first to release quarterly performance since the pandemic, which could have a big impact on all the major market players. <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Bobby Hellard<\/p>\n

21 Apr, 2020 <\/p>\n

IBM is withdrawing its full-year guidance for 2020 due to the current coronavirus pandemic and will reassess its position when there is more economic clarity.
\nThe company’s decision comes after…<\/p>\n","protected":false},"author":403,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-40750","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/40750","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/users\/403"}],"replies":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/comments?post=40750"}],"version-history":[{"count":2,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/40750\/revisions"}],"predecessor-version":[{"id":40755,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/40750\/revisions\/40755"}],"wp:attachment":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/media?parent=40750"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/categories?post=40750"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/tags?post=40750"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}