Cloud and Watson are surpassing legacy business units to give IBM the edge it craves in a new age of computing, resulting in a better-than-expected Q3 for Big Blue.
IBM said that “strategic imperatives” like big bets on artificial intelligence through Watson, and the internet of things (IoT) and analytics are beginning to offset revenues from slower units.
The 105-year-old tech giant – known in the industry as Big Blue – reported third-quarter earnings of $2.9bn on revenues of $19.2bn.
‘Our ability to apply deep expertise and breakthrough technology, led by Watson and the IBM Cloud, to massive amounts of data is enabling us to build new markets and transform industries’
– GINNI ROMETTY
Strategic imperatives revenue of $8bn in the quarter brings to $31.8bn the amount the company has earned from Watson and IoT in the last year, or 40pc of revenue.
Cloud revenues came in at $12.7bn for the last 12 months.
Cloud as a service revenues were $7.5bn during the quarter, up 66pc on last year.
New markets and new industries
“IBM’s third-quarter performance, led by continued double-digit growth in our strategic imperatives, is a testament to our leadership in cognitive solutions and cloud,” said Ginni Rometty, IBM chairman, president and CEO.
“Our ability to apply deep expertise and breakthrough technology, led by Watson and the IBM Cloud, to massive amounts of data is enabling us to build new markets and transform industries.
“Whether it is banks implementing IBM blockchain solutions, hospitals leveraging Watson to fight cancer, or retailers using cognitive apps built on the IBM Cloud to transform the customer experience, clients across all industries are tapping into a new kind of innovation value from IBM,” Rometty said.