Cloud generates $4.4bn in revenue for IBM
Segment grew 69 per cent in 2013, according to annual report
IBM’s cloud business has experienced a bumper year as the company drives home its “IBM-as-a-Service” message to clients.
According to the company’s annual report, its cloud division generated $4.4 billion (£2.64 billion) in revenue during 2013, growing 69 per cent compared to the previous year.
During 2013, IBM purchased SoftLayer for an undisclosed sum before pledging in January to invest $1.2 billion (£721.86 million) in growing its datacentre estate.
“The impact of our cloud investments shows up clearly in our results,” said chairwoman Ginny Rometty in the report.
Rometty claimed the newly announced funds for growing IBM’s cloud footprint would enable to company to “meet growing demand for greater speed, and legal requirements for compliance and data residency”.
“We currently have 25 datacentres globally, and the ... $1.2 billion investment ... will see the opening of 15 more, in the US, the UK, Australia, Brazil, Canada, China, France, Germany, India, Japan and Mexico,” she added.
The company also said it is taking a ‘cloud first’ approach to software development, with Rometty saying it is not the cloud’s technology that is the main engine for economic growth, but “the new business models cloud will enable for enterprises and institutions”.
Rometty reiterated IBM’s commitment to its ‘composable business’ strategy, which was laid out at its Pulse 2014 conference, by opening up its software portfolio to developers.
“As we actively embrace cloud in order to deliver ‘IBM as a Service’ to our clients, we expect to see significant benefits in client experience, revenue growth and enterprise productivity,” she concluded.