IBM grows in cloud and data analytics but overall revenue slides
Summary
IBM’s revenue continued to decline in the second quarter but growth in some of its strategic initiatives like cloud computing and data analytics suggest that the company may be on track in its transition plans. The Armonk, New York, company said Monday that revenue from its new “strategic imperatives” like cloud, analytics and security increased by 12 percent year-on-year to US$8.3 billion. IBM’s systems revenue, for example, was down 23 percent in the quarter to $2 billion, while its Global Business Services, including consulting, global process services and application management, brought in revenue of $4.3 billion, down 3.0 percent from a year earlier. Revenue for the company’s z Systems mainframes was down 40 percent in the quarter while margins improved, “consistent with where we are in the product cycle.” Schroeter said. IBM acquired EZSource in the quarter to help developers quickly and easily update mainframe applications.
