Strategic imperatives continue to be a silver lining
IBM’s (IBM) Technology Services and Cloud Platforms segment includes its GTS (Global Technology Services) business and cloud infrastructure and platform capabilities. In fiscal 4Q17, IBM’s GTS revenue accounted for ~41% of its total revenue. As has been the trend for some time, GTS reported a decline, falling 4% to $9.2 billion.
However, the segment’s Strategic Imperatives business revenue continued to grow, by 12%. Cloud revenue rose 10%. Under the Infrastructure Services subsegment, 45% of the signings were related to cloud offerings.
IBM’s presence in the cloud space strengthens
IBM has shared that, since the launch of its private cloud software platform, 120 enterprise clients have joined the platform. The company’s tailored hybrid cloud offering, launched on November 1, 2017, as a part of company’s cloud strategy, is built on Kubernetes-based container architecture. It enables companies to develop on-premises cloud capabilities to speed up app development and acts as a stop-gap in their journey from total on-premises systems to a mix of on-premises and cloud systems. IBM is a leader in the hosted and private cloud space, according to Synergy Research.