IBM leads the way strategically in 2015, seeing major growth in Cloud, security and systems

US – American multinational technology and consulting giant, IBM, led the way in 2015 with its strategic initiatives, with cloud now a US $10 billion business and security a $2 billion unit. Systems and analytics also grew.

Despite another quarterly revenue slide, IBM sees a silver lining in its strategic imperatives as these key focus areas—cloud, analytics, mobile, social and security—show significant growth and indicate Big Blue is committed to succeeding in its transformation.

In the fourth quarter of 2015, IBM saw its revenue decline 9 percent to $22.1 billion; however the company’s strategic imperatives revenue grew 26 percent (adjusting for currency and the System x divestiture) to $28.9 billion and now represents 35 percent of the company’s overall revenue.

For all of 2015, IBM’s total cloud revenue grew 43 percent to $10.2 billion. Cloud delivered as-a-service revenue grew 50 percent to $4.5 billion, business analytics grew 7 percent to $17.9 billion, mobile revenue more than tripled and security revenue grew 5 percent.

“Our strategic imperatives continued strong performance, up 26 percent for the year,” said Martin Schroeter, IBM senior vice president and chief financial officer. “This now represents 35 percent of IBM’s revenue. Our profit and margin reflect our portfolio actions as we shift to higher value, as well as the level of investments we’re making to drive our transformation.”

Schroeter spoke of how large companies with many applications and processes are looking to IBM to drive broad-based transformations to the cloud. This underscores how the intersection of analytics and cloud continues to play to IBM’s strengths, and how hybrid cloud is emerging as a major bet for businesses, he said.
As part of a recently signed a $1.5 billion cloud services deal with European Bank BNP Paribas, IBM will operate two of the bank’s data centers in Belgium as hybrid cloud centers, and provide cloud infrastructure and a suite of transformation cloud services spanning applications testing, business intelligence, security and core banking solutions, in addition to big data analytics.