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How IBM’s Global Business Services Performed in 4Q17

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IBM’s cloud continues to report high growth

In this article, we’ll look at how IBM’s (IBM) GBS (Global Business Services), which comprises global process services, consulting, and application management, performed. Overall, the segment’s revenue grew 2% to $4.2 billion in fiscal 4Q17.

Strategic Imperatives revenue continued to grow, GBS revenue rose 7% to $2.6 billion, and cloud revenue rose 17% to $1.1 billion on a constant-currency basis. Strategic Imperatives contributed close to 62% of the segment’s revenue. Cloud revenue, as has been a trend for some time, continued to report the highest growth in this segment.

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IBM’s Interactive Experience continues growth

Signings in IBM’s GBS segment grew for a fourth straight quarter, which bodes well as it should lead to a backlog and an increase in revenue. IBM’s consulting backlog posted growth, and fiscal 4Q17 marked a second straight quarter of consulting revenue growth. In 4Q17, consulting revenue rose 1%, led by IBM’s Interactive Experience business, which rose 40% year-over-year.

IBM has acquired Vivant Digital, ecx.io, Resource/Ammirati, Aperto, Bluewolf, and Expert Personal Shopper to boost its iX business. In December 2017, IBM entered into a partnership with Blue Prism. This deal will integrate Blue Prism’s “robotics processing automation software with IBM services, to deliver digital workforce solutions that increase productivity and enable automation at scale.”

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