IBM’s (IBM) cloud business has continued to grow, fueled by the integration of security features and AI and the migration of data from on-premises to the cloud. As shown in the graph below, IBM’s cloud revenue has grown over the last five quarters, at a compound annual rate of 4.7%.
In fiscal Q1 2018, its cloud revenue grew 20% YoY (year-over-year) to $4.2 billion. Its as-a-service offerings maintained an annual run rate of $10.7 billion, up 20% YoY, and its trailing-12-month cloud revenue was $17.7 billion.
Key catalysts of the cloud business
The cloud space is dominated by Amazon (AMZN), Microsoft (MSFT), and Google (GOOGL), all leaders in Gartner’s Magic Quadrant. IBM’s public and hybrid cloud platforms embedded with AI technology provide valuable insights and analytic support to clients and support most applications, winning it many cloud contracts. GDPR (General Data Protection Regulation) deployment in Europe may also boost the company’s security business in the cloud.