Editor’s note: Kelly Lesiczka is Research Analyst with Technology Business Research.
HAMPTON, N.H. – IBM Services uses its unified brand across Global Business Services (GBS) and Global Technology Services (GTS) to win deals highlighting business-outcome-driven digital transformation (DT) initiatives enabled by modernized applications and IT infrastructures.
[The news was among IBM’s quarterly earnings results disclosed Tuesday. Earnings and revenue as well as earnings forecast all topped analysts’ expectations. Earnings hit $4.87, 3 cents higher than expected, but they were down 5 percent year over year.
[Revenue came in at $21.8 billion, $5 million more than estimates.
[Earnings for 2019 were forecast at $13.90 per share, 6 cents higher than forecast. The earnings expectations do not include any impact from IBM’s merger with Raleigh-based Red Hat. The news helped drive IBM shares up 6 percent ahead of Wednesday’s market open.]
For example, IBM announced in December that it has completed more than 100 successful SAP S/4HANA implementations that speed up clients’ digital environments by simplifying business processes, upgrading their technology infrastructures and establishing the foundations for adoption of next-generation solutions such as artificial intelligence (AI) and blockchain.
We expect IBM to invest in DT sales and delivery talent to improve signings and achieve sustainable and profitable revenue growth.
GBS reported growth of 4.1% in 4Q18 as IBM Services’ technical and industry expertise resonate well with clients, transitioning its pipeline to revenue growth. GTS revenue declined 3.8% during the quarter, following declines in technical support services, offsetting growth from IBM Cloud Private adoption.
Inside IBM earnings: Global Business, Technology Services help Big Blue beat Street
(C) TBR
