IBM Corp. has found its recipe for success — cloud computing and artificial intelligence. The company reported higher earnings and revenue due to its new technology strategies, The Wall Street Journal reported Jan. 26.
On Jan. 24, IBM reported its fourth quarter revenue earnings, including a 16 percent increase in hybrid cloud revenue and an 8.2 percent increase in software revenue, which included its AI and data tools.
IBM shifted its information technology focus during the COVID-19 pandemic, capitalizing on accelerated hybrid cloud computing, as remote work and e-commerce picked up and IT workloads changed.
IBM's offerings — which help companies get advanced capabilities up and running while gathering insights from business and transaction data — also accelerated the company's growth and need within the industry.
Bob Parkers, senior vice president at International Data Corp., told The Wall Street Journal that 70 percent of IBM's revenue is coming from its software services.
The hybrid cloud computing and AI markets continue to expand, putting IBM in a good position, according to the report.