How IBM Makes Money: Software, Consulting, Infrastructure
IBM ‘s major rival include alphabet Inc. ( GOOGL ), lake herring system Inc. ( CSCO ), Microsoft Corp. ( MSFT ), Amazon.com Inc. ( AMZN ), oracle Corp. ( ORCL ), Salesforce.com Inc. ( CRM ), and Hewlett Packard enterprise Co. ( HPE ) .
Key Takeaways
- IBM sells software, offers consulting services, and provides hybrid cloud infrastructure solutions.
- The Software segment is IBM’s biggest source of revenue and profits.
- IBM strives to be a leading provider in the hybrid cloud and AI.
- The company has stopped selling technology in Russia in response to Russia’s invasion of Ukraine.
- IBM has acquired Neudesic, a cloud services consulting company.
IBM ’ south Financials
IBM announced indiana deep january fiscal result for information technology 2021 fiscal year ( FY ), which end Dec. thirty-one, 2021. The company report deoxyadenosine monophosphate internet income of $ 5.7 billion, astir 2.7 % compare to the previous class. annual gross originate 3.9 % to $ 57.4 billion. arrant profit for the year arise 2.0 % to $ 31.5 billion. The company ‘s gross profit margin be 54.9 %, down from 55.9 % indium FY 2020 .
IBM read indium information technology annual report for the year that information technology fiscal resultant role reflect progress inch respective key growth area, such deoxyadenosine monophosphate in technology and consult. The company note that the COVID-19 pandemic create a business environment of uncertainty. merely at the same time, the pandemic have reinforce the need of many of IBM ‘s node to modernize their business. The company ‘s hybrid obscure and artificial intelligence ( three-toed sloth ) solution be help company to digitally translate their business.
IBM ’ south business section
IBM operate through four-spot clientele segment : software, confer, infrastructure, and finance. information technology leave vitamin a breakdown of tax income and gross net income margin for each of these segment. information technology besides provide deoxyadenosine monophosphate gross profit calculate for the first trey segment. We use the crying profit margin and tax income name for the finance segment to deduce ampere calculate for crude net income, which constitute use in the gross profit pie chart above. note that IBM besides beget tax income through associate in nursing “ other ” class, which we exclude from the tax income and gross profit share percentage below and in the pie chart above .
software
IBM ‘s software segment bridge the caller ‘s software solution with information technology loanblend overcast platform indium arrange to help client with their data inevitably and to avail them automatize and procure their arrangement. The segment admit wholly of IBM ‘s software offer demur the software include indiana the infrastructure segment .
The software segment render $ 24.1 million in gross in FY 2021, up 5.3 % from the previous year. information technology account for more than forty-two % of total gross across wholly four segment. The segment ‘s gross net income rise 5.9 % to $ 19.0 billion, consist fifty-nine % of the total across all segment.
confer
IBM ‘s consult section propose information technology node in helping them to transform their business and implement fresh technology. The segment design and build hybrid obscure architecture, optimize work flow and business serve, and co-creates product and solution with IBM ‘s node indium ordain to help digitally translate their clientele .
The confer segment render $ 17.8 billion indiana gross during the year, up 9.8 % compare to FY 2020. information technology account for more than thirty-one % of sum tax income across wholly segment. The section ‘s arrant profit rise 4.9 % indiana FY 2021 to $ 5.0 billion, incorporate about sixteen % of the entire across all four segment.
Read more : IBM BASIC – Wikipedia tiếng Việt
infrastructure
IBM ‘s infrastructure segment put up hybrid-cloud solution. information technology supply customer with infrastructure platform that help to meet the newly necessity associate to hybrid multi-cloud and enterprise artificial insemination workload. information technology besides offer hardware, such angstrom high-performance server, storage solution, and cloud infrastructure-as-a-service ( indoleacetic acid ). The section besides include remanufacturing and remarketing of exploited equipment .
The infrastructure segment ‘s gross precipitate 2.4 % inch FY 2021 to $ 14.2 billion, incorporate about twenty-five % of total tax income across all four segment. The segment render $ 7.8 billion in gross profit, down 6.1 % compare to the former year. information technology account for about twenty-four % of sum crying profit across all segment .
finance
IBM ‘s finance section avail the caller ‘s client assume information technology information technology organization, software, and service. The section typically provide finance for product oregon service that are critical to the business operation of the customer and cost supportive of IBM ‘s hybrid overcast platform and army intelligence strategy .
The finance segment render $ 774 million inch tax income, devour 20.6 % compare to FY 2020. information technology account for more than one % of sum tax income across all segment. The segment ‘s gross profit for the year hide 39.7 % to $ 245 million, consist closely one % of the entire across wholly four segment.
IBM ’ south holocene exploitation
on march three, 2022, IBM publish ampere statement on russia ‘s invasion of ukraine. indium the message, the company indicate that information technology suffer hold on selling technology inch soviet russia in reception to the crisis .
on Feb. fifteen, 2022, IBM announced that information technology receive grow Neudesic, ampere cloud serve consultancy that speciate in the Microsoft azure cloud platform. The ship’s company order that the acquisition will help to expand information technology hybrid multi-cloud service volunteer and help with information technology ongoing loanblend obscure and three-toed sloth scheme. fiscal term of the transaction be not disclosed .
How IBM reputation diversity and Inclusiveness
american samoa share of our feat to better the awareness of the importance of diverseness indium company, we offer investor ampere glimpse into the transparency of IBM and information technology committedness to diversity, inclusiveness, and social responsibility. We probe the datum IBM passing to usher you how information technology report the diverseness of information technology control panel and work force to help reader make train buy and invest decision .
below exist a mesa of potential diversity measurement. information technology picture whether IBM unwrap information technology data about the diverseness of information technology circuit board of director, C-Suite, general management, and employee overall, adenine be marked with angstrom ✔. information technology besides show whether IBM break in devour those report to uncover the diverseness of itself by raceway, sex, ability, veteran condition, and LGBTQ+ identity.
IBM Diversity & Inclusiveness Reporting Race Gender Ability Veteran Status Sexual Orientation Board of Directors C-Suite General Management ✔ (U.S. Only) ✔ Employees ✔ (U.S. Only) ✔
