{"id":41463,"date":"2020-10-20T13:31:22","date_gmt":"2020-10-20T13:31:22","guid":{"rendered":"http:\/\/icloud.pe\/blog\/?guid=13ff8ecf797dcd231d86a1d621bda946"},"modified":"2020-10-20T13:31:22","modified_gmt":"2020-10-20T13:31:22","slug":"ibm-revenues-fall-for-third-quarter-in-a-row-despite-cloud-surge","status":"publish","type":"post","link":"https:\/\/icloud.pe\/blog\/ibm-revenues-fall-for-third-quarter-in-a-row-despite-cloud-surge\/","title":{"rendered":"IBM revenues fall for third quarter in a row despite cloud surge"},"content":{"rendered":"


\n Keumars Afifi-Sabet<\/a><\/span>
\n <\/span><\/p>\n

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20 Oct, 2020<\/span><\/div>\n<\/p><\/div>\n<\/div>\n

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

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The revenues of computing giant IBM declined by 2.6% year-on-year during the third quarter of 2020, with the company reporting $17.6 billion of income fuelled chiefly by a surge in cloud revenue.<\/p>\n

This dip represented the third quarter of consecutive year-on-year revenue decline for the company, with IBM\u2019s systems division, global business services and global technology services and global financing sector suffering over the last three months.<\/p>\n

The positive trend in terms of the firm’s cloud business also continued, following a\u00a030% spike in cloud revenue<\/a>\u00a0during the previous quarter, and\u00a019% growth<\/a>\u00a0in the three months before that.<\/p>\n

<\/p>\n

\nThe company\u2019s cloud computing divisions, particularly its cloud and data platforms division, led by Red Hat, grew by 7% year-on-year, bucking the wider business trend. Within this segment, cloud and data platforms grew 20%, while cognitive applications grew 1%.\u00a0<\/p>\n

These financial results have emerged only days after the company announced it plans to divide its business in half, spinning its infrastructure services unit into a separate entity while\u00a0going all-in on the cloud<\/a>.<\/p>\n

\u201cThe strong performance of our cloud business, led by Red Hat, underscores the growing client adoption of our open hybrid cloud platform,” said IBM CEO Arvind Krishna.\u00a0<\/p>\n

“Separating the managed infrastructure services business creates a market-leading standalone company and further sharpens our focus on IBM’s open hybrid cloud platform and AI capabilities. This will accelerate our growth strategy and better position IBM to seize the $1 trillion hybrid cloud opportunity.\u201d<\/p>\n

The company\u2019s\u00a0plans to pour all its efforts into its cloud business<\/a>\u00a0will, on paper, be justified based on these most recent financial results, with the general health of cloud computing improving following the COVID-19 pandemic.<\/p>\n

The firm\u2019s global technology services division, which includes infrastructure and cloud services as well as technology support services, contracted by 4% year-on-year, with cloud revenue within this segment up 9%.\u00a0<\/p>\n

The systems division, meanwhile, saw revenues of $1.3 billion, down 15%, driven by declines in IBM Z and Storage Systems. This is reflective of the impact of product cycle demands, the company said.<\/p>\n

As part of the spin-off, IBM wants to create two separate companies by the end of 2021, with the to-be-cleaved infrastructure business, dubbed NewCo, making way for IBM to focus on\u00a0AI capabilities<\/a>\u00a0and\u00a0hybrid cloud<\/a>. <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Keumars Afifi-Sabet<\/p>\n

20 Oct, 2020 <\/p>\n

The revenues of computing giant IBM declined by 2.6% year-on-year during the third quarter of 2020, with the company reporting $17.6 billion of income fuelled chiefly by a surge in cloud …<\/p>\n","protected":false},"author":433,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-41463","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/41463","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\/433"}],"replies":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/comments?post=41463"}],"version-history":[{"count":1,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/41463\/revisions"}],"predecessor-version":[{"id":41464,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/41463\/revisions\/41464"}],"wp:attachment":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/media?parent=41463"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/categories?post=41463"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/tags?post=41463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}