Menu
​Cloud turnaround can’t come quick enough as IBM decline enters 15th quarter

​Cloud turnaround can’t come quick enough as IBM decline enters 15th quarter

Big Blue's much publicised transformation continues at a slow pace...

Ginni Rometty - CEO and Chairman, IBM

Ginni Rometty - CEO and Chairman, IBM

IBM’s much publicised transformation continues at a slow pace, with the tech giant reporting its 15th consecutive quarter of decline.

Despite beating analyst revenue expectations, Big Blue lower earnings guidance for the full-fiscal 2016 year, dampening investors’ moods in the process, as shares dropped four percent following the release.

As the company shifts its focus from low-margin operations to strategic growth areas such as cloud computing and big data, it did manage to post better than expected financials, with quarterly earnings coming in at $US4.5 billion on revenue of $US22.1 billion.

But challenges remain, with fourth-quarter net income comparing with $US5.5 billion in the fourth quarter of 2014, down 19 percent and operating (non-GAAP) net income at $US4.7 billion compared with $US5.8 billion in the fourth quarter of 2014, down 19 percent.

“We continue to make significant progress in our transformation to higher value,” says Ginni Rometty, CEO and Chairman, IBM.

“We strengthened our existing portfolio while investing aggressively in new opportunities like Watson Health, Watson Internet of Things and hybrid cloud.

“As we transform to a cognitive solutions and cloud platform company, we are well positioned to continue delivering greater value to our clients and returning capital to our shareholders.”

Positive steps

On the plus side however, IBM’s investments continue to hold promise, with the company’s strategic imperatives - cloud, analytics and engagement - increasing 10 percent year to year (up 16 percent adjusting for currency).

For the full year, revenues from strategic imperatives increased 17 percent (up 26 percent adjusting for currency and the divested System x business) to $US28.9 billion, now representing 35 percent of total IBM consolidated revenue.

For the full year, total cloud revenues (public, private and hybrid) increased 43 percent (up 57 percent adjusting for currency and the divested System x business) to $US10.2 billion.

Revenues for cloud delivered as a service - a subset of the total cloud revenue - increased 50 percent to $US4.5 billion; and the annual as-a-service run rate increased to $US5.3 billion from $US3.5 billion in the fourth quarter of 2014.

Furthermore, revenues from business analytics increased seven percent (up 16 percent adjusting for currency) to $US17.9 billion - revenues from mobile more than tripled and from security increased five percent (up 12 percent adjusting for currency).

Geographically speaking, Asia-Pacific revenues decreased 10 percent (down three percent adjusting for currency) to $US4.4 billion.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags analyticsdataIBMCloudmobilitybig dataData Centre

Featured

Slideshows

Reseller News launches inaugural Hall of Fame lunch

Reseller News launches inaugural Hall of Fame lunch

Reseller News welcomed 2015 and 2016 inductees - Darryl Swann, Dave Rosenberg, Gary Bigwood, Keith Watson, Mike Hill and Scott Green - to the inaugural Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed how the channel can collectively work together to benefit New Zealand, the Kiwi skills shortage and the future of the industry. Photos by Maria Stefina.

Reseller News launches inaugural Hall of Fame lunch
Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Show Comments