Cloud, mobility, big data and security were the star performers for IBM in another otherwise lacklustre set of quarterly numbers for the IT giant.
Although Big Blue actually topped analyst expectations for its fiscal Q2, revenues fell back two per cent year on year to $24.4 billion as the New York-listed behemoth was shackled by falling services and hardware sales.
GAAP net profit rose 28 percent to $4.1 billion in the three months ending 30 June.
With its hardware business flatlining, IBM is pushing heavily into areas such as cloud and big data, this week announcing an historic partnership with Apple around applications.
Hardware sales tumbled 11 percent to $3.3 billion during the quarter, while revenues from its Global Services arm fell one percent to $13.9 billion. Software sales inched up one percent to $6.5 billion.
There were some bright spots, however, with the annual runrate from cloud delivered as a service virtually doubling year on year to $2.8bn. Business analytics sales rose seven percent, mobile revenues more than doubled and revenue from security – a sector in which Gartner now believes IBM is a top-three player - flew up 20 percent.
Revenues from the Americas rose one percent to $10.6 billion, adjusting for local currency.
“In the second quarter, we made further progress on our transformation. We performed well in our strategic imperatives around cloud, big data and analytics, security and mobile,” said IBM chief executive Ginni Rometty.
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