{"id":42288,"date":"2021-07-20T10:11:53","date_gmt":"2021-07-20T10:11:53","guid":{"rendered":"http:\/\/icloud.pe\/blog\/?guid=fb2445ee8a541bb13eeba2bcc9e4c7f8"},"modified":"2021-07-20T10:11:53","modified_gmt":"2021-07-20T10:11:53","slug":"ibm-records-strongest-revenue-growth-in-three-years","status":"publish","type":"post","link":"https:\/\/icloud.pe\/blog\/ibm-records-strongest-revenue-growth-in-three-years\/","title":{"rendered":"IBM records strongest revenue growth in three years"},"content":{"rendered":"


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

\n
\n
20 Jul, 2021<\/span><\/div>\n<\/p><\/div>\n<\/div>\n

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

\n

IBM<\/a> beat analyst expectations after reporting that revenues increased by 3%\u00a0year-on-year revenue growth in the second quarter of 2021 to $18.7 billion, its fastest increase for three years.<\/p>\n

The tech giant also reiterated\u00a0that its revenues will continue to grow across the full year.\u00a0 \u00a0<\/p>\n

<\/p>\n

\nIBM CEO Arvind<\/span> Krishna attributed the increase to “strong performance” in the company’s Global Business Services<\/span> and software segments, but its revenues for cloud services and Red Hat<\/a> also saw significant increases.\u00a0<\/p>\n

“At the same time, we continued to help clients infuse our AI-based technology offerings into their core business workflows,” said\u00a0Krishna.\u00a0“We are pleased with our progress and we remain on track to deliver full-year revenue growth and meet our cash flow objective.”<\/p>\n

The Cloud and Cognitive Software unit, which includes Red Hat, brought in $6.1\u00a0billion in revenue, a 6% increase compared to 2020, while revenues from IBM’s Global Business Services increased<\/span> by 12%. System revenues, which includes hardware, contributed $1.71 billion, which was a 7% decline year-on-year.<\/p>\n

The company is preparing to split its business in two with an infrastructure-focused unit called Kyndryl<\/a>\u00a0launching later in the year. This will include IBM’s Global Technology Services unit, which includes\u00a0as outsourcing and support which brought in $6.34 billion in the second quarter.<\/p>\n

“While our performance with existing clients remains strong, as we would expect, the sales cycles for new logo clients is elongating as they await further information related to Kyndryl<\/span>,” said Jim Kavanaugh<\/span>, IBM’s finance chief.<\/p>\n

The second quarter also saw IBM spend $1.75 billion spent on acquisitions, the most in a single quarter since it splashed $34 billion on Red Hat in Q3 of 2019<\/a>. It is currently working on a deal for process-mining software company myInvenio<\/a>, application management firm Turbonomic<\/a> and a Salesforce consulting spin-off called Waeg<\/span>.\u00a0<\/p>\n

This was in addition to the\u00a0unveiling of its “breakthrough” 2-nanometer chip technology<\/a>, which IBM claims will vastly improve energy efficiency and <\/span>performance of various kinds of devices. <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Bobby Hellard<\/p>\n

20 Jul, 2021 <\/p>\n

IBM beat analyst expectations after reporting that revenues increased by 3%\u00a0year-on-year revenue growth in the second quarter of 2021 to $18.7 billion, its fastest increase for three years.
\nThe…<\/p>\n","protected":false},"author":403,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-42288","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/42288","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=42288"}],"version-history":[{"count":1,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/42288\/revisions"}],"predecessor-version":[{"id":42289,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/42288\/revisions\/42289"}],"wp:attachment":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/media?parent=42288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/categories?post=42288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/tags?post=42288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}