[AI SW] IBM 4Q24 Earnings Call 중

Over the last year and a half, we have taken a series of actions to execute our hybrid cloud and AI strategy and improve our revenue profile – optimizing our portfolio, increasing investments, expanding our ecosystem and simplifying our go to market. As we start to yield benefits from these actions, our constant currency performance improved through 2021. Our most significant portfolio action was the separation of Kyndryl. You’ll remember we had initially expected the spin by the end of the year, and we completed it in early November. As we discuss our results, we’ll focus on the new basis and structure that encompasses today’s IBM.

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We are seeing high demand for our capabilities in several areas. Clients are eager to automate as many business tasks as possible, especially given the new employee demographics. This dynamic is likely to play out over the long term. They are also using AI and predictive capabilities to mitigate friction in their supply chains. Cybersecurity remains a major area of concern, as the cost of cybercrime – already in the billions of dollars – rises each year. As clients deal with these challenges and opportunities, they are looking for a partner they can trust and who has a proven track record in bringing about strategic transformation projects. This is why our strategy is focused on helping our clients leverage the power of hybrid cloud and AI. Hybrid cloud is about providing a platform that can straddle multiple public clouds, private clouds, and as-a-service properties that our clients typically have. Our approach is platform centric, and the platform we have built is open, secure and flexible. And, it provides a solid base for the multiplier effect across software and services for IBM and our ecosystem partners.

IBM 4Q21 Earnings Call

We entered the year intent on enhancing our portfolio. Software is now about 45% of our business, with more than $15 billion of ARR, growing at double digits. We delivered strong and accelerating revenue growth of 11% in the fourth quarter, which includes about 8 points of organic growth and strength across the portfolio. This growth was led by Red Hat, up 17% in the quarter. Our early leadership in generative AI and the Consulting Advantage platform have positioned us well in today’s evolving market. In Infrastructure, z16 is our most successful program in history, highlighting customer adoption and continued reliance on the mainframe. We see more opportunities ahead as our infrastructure solutions play a crucial role in helping clients bring AI workloads closer to their data and we will launch z17 in the middle of 2025.