IBM almost ends loss streak with gains in cloud

Recent investments in cloud services has provided a boost in revenue

IBM has posted a higher than expected third-quarter revenue today, boosted by strong growth in cloud services and analytics.

Revenue in those areas rose overall by 16% to $8 billion, with revenue in cloud climbing 44% compared to 30% in the second quarter.

However, this boost was not enough to halt their 18th consecutive quarter of declining revenue, with shares falling a further 3.1% to $150.60.

Revenue for the third quarter ended at $19.23 billion, falling slightly from last year's $19.28 billion, although the company still outperformed analyst estimates, according to Reuters.

Advertisement - Article continues below

The US IT firm has focused on more profitable ventures under chief executive Ginni Rometty and has invested over $5 billion in areas such as cloud services and security while reducing their commitment to hardware and services. The shift to these "strategic imperatives" has generated almost $32 billion over the last 12 months.

"IBM's third-quarter performance, led by continued double-digit growth in our strategic imperatives, is a testament to our leadership in cognitive solutions and cloud," said Ginni Rometty.

"Our ability to apply deep expertise and breakthrough technology, led by Watson and the IBM Cloud, to massive amounts of data is enabling us to build new markets and transform industries," added Rometty.

IBM's total cloud revenue for the year now stands at $12.7 billion, the largest of any provider.

"We're building cloud data centres which don't come online at 90% utilisation, you build utilisation as you ramp," said IBM chief financial officer Martin Schroeter, speaking to Reuters.

IBM recently started a $3 billion plan to connect the super-computer Watson to IoT networks. From this, the firm announced a $200 million investment in a new global headquarters based in Munich, in response to growing demands from businesses that want to restructure using AI and IoT.

Featured Resources

The IT Pro guide to Windows 10 migration

Everything you need to know for a successful transition

Download now

Managing security risk and compliance in a challenging landscape

How key technology partners grow with your organisation

Download now

Software-defined storage for dummies

Control storage costs, eliminate storage bottlenecks and solve storage management challenges

Download now

6 best practices for escaping ransomware

A complete guide to tackling ransomware attacks

Download now



IBM doubles down on Red Hat independence

10 Jul 2019
network attached storage (NAS)

Best NAS drives 2019

26 Apr 2019
cloud storage

Dropbox Business Advanced review: First-rate filesharing

22 Jan 2019
Data & insights

IBM talks data at CES

9 Jan 2019

Most Popular

identity and access management (IAM)

44 million Microsoft customers found using compromised passwords

6 Dec 2019
Microsoft Azure

Microsoft, not Amazon, is going to win the cloud wars

30 Nov 2019

Five signs that it’s time to retire IT kit

29 Nov 2019

Where modernisation and sustainability meet: A tale of two benefits

25 Nov 2019