Some of it strategic initiatives are kicking off such as data analytics and cloud computing is the sign that IBM is still on the right path in its transition strategy despite the revenue keep decreasing in the second quarter as well.
Revenue from the strategic imperatives like analytics, mobile, cloud, and security upsurge by 12 percent yearly and has reached USD 8.3 billion mentioned IBM the Armonk, NY-based Company.
Revenue from analytics and security business upsurge 4 percent and 18 percent respectively while cloud (hybrid, public and private) increased by 30 percent. Martin Schroeter, senior VP and CFO, IBM said strategic imperatives delivered $ 31 billion accounting for 38 percent of the company’s revenue over the period of last 12 months. The company doesn’t need to grow at this rate in these businesses in order to get the target the company has set for itself i.e. 40 percent of its revenue by the end of 2020. Including a new cloud base version of the cognitive tech trained on security the company is expanding its Watson cognitive platform to newer areas.
As per the commonly accepted accounting principles profit of the company is down by $ 20 billion every year.