IBM grows in cloud and data analytics but overall revenue slides

Grazed from PCWorld. Author: John Ribeiro.

IBMs 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. That increase was, however, lower than the growth the company had reported in these businesses in the first quarter.

Cloud revenue – public, private and hybrid – grew 30 percent in the second quarter, while revenue from analytics grew 4 percent, revenue from mobile increased 43 percent and the security business grew 18 percent. Over the last 12 months, strategic imperatives delivered close to $31 billion in revenue, and now accounts for 38 percent of the company’s revenue, said Martin Schroeter, IBM senior vice president and chief financial officer, in a conference call…

The company has benefited from its over 20 acquisitions over the last year but has also seen some solid organic growth, he added. IBM had set a target for itself of $40 billion or 40 per cent of its revenue by the end of 2018. The company doesn’t need to grow at this rate in these businesses in order to get to the target, Schroeter said…

Read more from the source @ http://www.pcworld.com/article/3097273/ibm-grows-in-cloud-and-data-analytics-but-overall-revenue-slides.html