IBM’s hybrid-cloud efforts paid off in the fourth quarter of 2022 following a strategic prioritization of cloud and AI strategies in the prior quarter.
WHY IT MATTERS: As part of the tech giant’s software portfolio growth, investments throughout 2022 were made in hybrid-cloud and AI capabilities, Chief Executive Arvind Krishna said during Wednesday’s Q4 earnings call, noting, “Hybrid is where the world is going.”
Companies leveraging IBM’s cloud include Delta Airlines and Canadian Imperial Bank of Commerce, Krishna said.
“For the year, our hybrid cloud revenue was over $22 billion, up 17% from 2021,” Chief Financial Officer Jim Kavanaugh said during the call.
BY THE NUMBERS: IBM reported for Q4:
- Infrastructure revenue increased 2% YoY to $4.5 billion;
- Consulting revenue inches up slightly by 0.6% to $4.8 billion;
- Software revenue grew 3% YoY to $7.3 billion; and
- Total revenue stayed flat YoY at $16.7 billion.
NOTEWORTHY: Earlier this month, IBM launched IBM Partner Plus, allowing business partners access to IBM resources, according to a release.
The company also introduced Red Hat’s Edge, “a lightweight solution to flexibly deployed traditional or containerized workloads on small devices such as robots, IoT gateways, point-of-sale, and public transportation,” Krishna said.
FUTURE LOOK: In Q4, IBM acquired digital transformation services provider Octo, Krishna said, noting, “This caps the year with eight acquisitions across software and consulting.”
The company plans to continue on the purchasing path, he said. “We are on a steady state and our acquisitions are back to accretion.”
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