Their strategy is pivoted on key pillars of modern IT – cloud, AI, data and security - and includes solutions, services and partnerships
Offerings that address data, AI, cloud, analytics and cybersecurity now represent more than half of IBM’s revenue, accounting for approximately USD 1,900 Mn in revenue in 2018. Globally, IBM achieved $79.6 billion in revenue in 2018. It acquired the world’s leading open source technology provider for the enterprise, Red Hat last year. The acquisition will enhance IBM’s position as a hybrid cloud provider, helping clients unlock the full business value of the cloud. The idea was to deliver a complete, open hybrid cloud platform to customers, and enable build, run, and manage apps and workloads, across any cloud.
Its annual revenue in FY2019 was $1400 mn.
The Key Highlights:
• Strategic acquisition of Red Hat • Strengthens multi-cloud and open hybrid cloud positioning • Strategic push on cognitive
Total cloud revenues were more than $19 billion in 2018, up 12 percent, with $11.3 billion delivered as a service and $7.8 billion for cloud-related hardware, software and services to enable IBM clients to implement cloud solutions across public, private and multi-cloud environments. Today, 47 of the Fortune 50 depend on the IBM Cloud.
Continuing to deliver innovation in some of the strategic high-value areas, IBM introduced AI OpenScale, a platform to manage the life cycle of all forms of AI models and Multicloud Manager, a service to deploy and manage complete applications in any cloud environment.
Over 100 IBM Software offerings are now integrated with IBM Cloud Private, including blockchain, Watson, IoT and analytics. The company focused on reinventing industry workflows by leveraging automation and infusing AI, which helped to strengthen revenue in turn.
IBM Systems produces innovative infrastructure for AI and hybrid cloud. The z14, one of IBM’s most successful mainframe programs, saw a broad global adoption across 27 different industry segments. It had a strong growth in Power as well, with the introduction of POWER9 throughout its portfolio.
IBM Services was a key driver of IBM’s performance in 2018. It saw 47 engagements worth more than $100 million each including Aditya Birla Retail in India.There was a steady improvement in Global Business Services throughout the year.
IBM introduced the IBM Blockchain Platform for IBM Cloud Private and signed several new deals. IBM Blockchain now powers more than 500 client projects, with more than 85 active networks transforming supply chains, global shipping and cross-border finance.
Of the 9,100 patents granted to IBM in 2018, more than 1,600 were related to AI and 1,400 to cybersecurity. Some of the key customers of IBM in India are HDFC Ergo, Vodafone Idea, Future Group, Infibeam, Volvo Eicher Commercial, Godrej Group, Apollo Munich, Aditya Birla Fashion & Retail, State Bank of India, Honda and Maruti (IoT - Connected Cars), Airtel, Vodafone and Reiance Jio (Blockchain). Substantial inroads in larger IT-savvy verticals such as telco an BFSI is likely to help the company achieve its revenue goals.
—KARAN BAJWA Managing Director, IBM