IBM Expects to Double Cloud Revenues This Year
IBM delivered impressive Q2 financial results today. And if you look within the press release you’ll notice only one strategic mention of cloud computing. But it’s an important one: Big Blue said its cloud revenues are on track to double in 2011.
Is that statement truly impressive? Yes and no. On the one hand, IBM is signaling growing adoption of cloud computing. Heck, even community banks and credit unions are warming up to the cloud, according to Compushare, a long-established managed services provider.
Still, IBM’s cloud claim has its holes. Big Blue doesn’t disclose actual cloud revenue figures. Nor does Big Blue really say which IBM products and services contribute to the cloud momentum. Plus, it’s safe to say IBM’s cloud revenues are “doubling” from a relatively small base in 2010.
Perhaps the far bigger story is IBM’s continue success with services, software and even mainframe hardware. Among the key takeaways:
- IBM’s Q2 revenues rose 12 percent to $26.7.
- Software revenues rose 17 percent (10 percent adjusting for currency).
- Systems and technology revenues rose 17 percent (12 percent adjusting for currency). Within this category, System Z mainframe revenue rose 61 percent.
- Services revenue rose 10 percent (2 percent adjusting for currency).
- Roughly 80 percent of IBM’s revenues now come from software and services, Bloomberg reported, up from 65 percent a decade ago.
IBM’s Q2 results surface the same day that Cisco Systems confirmed plans to cut 6,500 employees in August 2011.