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@ 2016/10/18Cloud helps out
The ever shrinking Biggish Blue posted better-than-expected third-quarter revenue thanks to its moves to the cloud and analytics businesses.
Since Ginni Rometty took over IBM, the outfit has attempted to shift toward more profitable areas, such as cloud services, artificial intelligence, analytics, and security. Meanwhile it has killed off its traditional hardware and services businesses.
Revenue from those areas, which the company calls "strategic imperatives," rose 16 percent to $8 billion in the third quarter. Cloud revenue jumped 44 percent compared with a 30 percent rise in the second quarter, it said.
Curiously though shareholders were not that impressed and were more concerned about the fact the company had reported its 18th straight quarter of declining revenue. Shares were down 3.1 percent at $150.60 in after-market trading.
The ever shrinking Biggish Blue posted better-than-expected third-quarter revenue thanks to its moves to the cloud and analytics businesses.
Since Ginni Rometty took over IBM, the outfit has attempted to shift toward more profitable areas, such as cloud services, artificial intelligence, analytics, and security. Meanwhile it has killed off its traditional hardware and services businesses.
Revenue from those areas, which the company calls "strategic imperatives," rose 16 percent to $8 billion in the third quarter. Cloud revenue jumped 44 percent compared with a 30 percent rise in the second quarter, it said.
Curiously though shareholders were not that impressed and were more concerned about the fact the company had reported its 18th straight quarter of declining revenue. Shares were down 3.1 percent at $150.60 in after-market trading.
