Analyzing IBM’s Strategic Imperatives

IBM’s (IBM) Strategic Imperatives revenue has continued to grow, boosted by its cloud and security business. The Strategic Imperatives business, which comprises its cloud, analytic, mobility, and security business, contributes ~47% of IBM’s overall revenue.

Could IBM’s Strategic Imperatives Deliver in Fiscal Q2 2018?

The graph above shows IBM’s Strategic Imperatives revenue over the last five quarters, during which it has grown at a compound annual rate of 3.6%. Meanwhile, it cloud, analytic, and security revenue grew at a compound annual rate of 7%, 2.2%, and 12.5%, respectively.

Key drivers

IBM has continued to benefit from enterprises’ ongoing trend to migrate their on-premises database to the cloud platform. Also, as discussed in the previous part, the tech giant is continuously signing new cloud and analytics support deals, boosted by growing demand.

Growing cyber terrorism threats have strengthened demand for IBM’s security offerings, QRadar and Resilient. Launching more such innovative products may help the company reduce its gap with other popular cloud operators, such as Amazon (AMZN) Web Services, Microsoft (MSFT) Azure, and Google (GOOGL).

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