US-based business technology major IBM announced the financial results for the first quarter of 2017.
The quarterly revenue of IBM fell 3 percent to $18.2 billion. Cloud revenue of IBM touched $3.5 billion (+33 percent). Strategy business revenue of IBM was $7.8 billion (+12 percent)
IBM CEO Ginni Rometty said: “We are developing and bringing to market emerging technologies such as blockchain and quantum, revolutionizing how enterprises will tackle complex business problems in the years ahead.”
IBM added revenues of $4.1 billion (+2.1 percent) from Cognitive Solutions including Solutions Software and Transaction Processing Software — driven by growth in analytics and security, which include Watson-related offerings.
IBM generated revenues of $4.0 billion (–3 percent) from Global Business Services including Consulting, Global Process Services and Application Management.
IBM said its strategic imperatives grew in double digits led by the cloud and mobile practices.
IBM’s revenue from Technology Services & Cloud Platforms including Infrastructure Services, Technical Support Services and Integration Software was $8.2 billion (–2.5 percent) — driven by hybrid cloud services.
IBM said its revenue from Systems including Systems Hardware and Operating Systems Software was $1.4 billion (–16.8 percent).
Stephanie Long, research analyst at Technology Business Review, said modernization investments hinder IBM’s Q1 207 margins while revenues continue to decline.
Revenue declines persist as IBM maintains its focus on evolving its portfolio into a modernization enabler 1Q17 told a similar story for IBM to recent quarters past, as revenues continued declining, falling 2 percent to $18.2 billion.
IBM’s Q1 revenue was dragged down by contracting sales for legacy solutions despite the successes of modern solutions such as IBM’s cloud and cognitive capabilities. IBM achieved 13 percent increase in revenues from its strategic imperatives, and these solutions contributed 42 percent of overall revenues.