IBM’s Strategic Imperatives segment
So far in the series, we’ve discussed how IBM (IBM) is going to be impacted under the regime of the new president-elect, Donald Trump. We know that given its 3Q16 results, IBM saw its 18th straight quarter without revenue growth.
However, the company’s Strategic Imperatives segment, which refers to its investments in cloud, analytics, mobile, social, and security technologies, continues to grow. In the last 12 months, IBM’s Strategic Imperatives segment has garnered $32.0 billion in revenue, about 40.0% of the company’s total revenue.
IBM’s initiatives and strategies
In 3Q16, in line with its keen focus on Watson, IBM launched a new service, the Watson Virtual Agent. IBM also announced a partnership with Siemens (SIEGY) to fuel the adoption of Watson in the healthcare space. IBM, along with Siemens, aims to help healthcare providers to deliver value-based care to patients with chronic ailments such as cancer and heart disease.
Through strategic acquisitions and partnerships, IBM is trying to boost its Strategic Imperatives segment, including its Watson cognitive computing system. According to IDC (International Data Corporation), cognitive computing is “one of six Innovation Accelerators that will drive digital transformation by opening new revenue streams, creating information-based organizations, and changing the way work is performed.”
IBM is partnering not only in order to push Watson, but also to venture into rapidly growing and disruptive areas such as blockchain technology. In partnership with R3CV, Microsoft (MSFT) is also making a big stride in this space.
Looking at consistent growth in IBM’s Strategic Imperatives segment, we can infer that the company is heading toward the future of information technology. The market sentiment seems to be improving for IBM’s stock. After hitting a six-year low in February 2016, it’s already risen by more than 35%.