IBM: Unveiling the Core Aspects of its Business Model
Thursday, 25 April 2024, 10:27
The 'Big Blue' Transformation
IBM, known as the 'Big Blue,' has morphed into a software and consulting powerhouse, steering away from traditional hardware focus. Over the years, it has prioritized strategic acquisitions like Red Hat and divesting underperforming segments.
Revenue Breakdown
- Software: $26.3 billion (42.5%)
- Consulting: $20.0 billion (32.3%)
- Infrastructure: $14.6 billion (23.6%)
- Financing: $741 million (1.2%)
Focus Areas
- Enterprise software in cybersecurity, AI, and more
- Hybrid cloud platform led by Red Hat
- Consulting services aiding digital transformations
- Selling mainframe systems and Power servers
Return to Growth
IBM's strategic shifts towards recurring revenue sources have fueled its growth trajectory. Become acquainted with why investing in IBM could be a lucrative prospect amidst its enterprise cloud and AI dominance.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.