The substantial decline in revenue and net income was mainly due to the divestment of System x business.
IBM CEO Ginni Rometty said: “We are continuing to make investments to build platforms around analytics, cloud, mobility and security that lay the foundation for a new era of cognitive business.”
Revenues IBM’s cloud, analytics, and engagement increased 17 percent.
IBM’s cloud revenues increased more than 45 percent year-to-date, and is $9.4 billion over trailing 12 months.
The annual run rate for cloud delivered as a service increased to $4.5 billion from $3.1 billion in the third quarter of 2014.
Revenues from IBM business analytics increased 9 percent year-to-date. Revenues year-to-date from mobile more than quadrupled, from security increased 6 percent and social increased 32 percent.
IBM revenue Americas’ fell 10 percent to $9.1 billion.
Revenues from Europe/Middle East/Africa fell 16 percent to $6.1 billion.
IBM said its Asia-Pacific revenues decreased 19 percent to $4.1 billion.
Revenues of IBM from the BRIC countries fell 30 percent.
IBM’s Global Technology Services segment revenues dipped 10 percent to $7.9 billion. Global Business Services segment revenues fell 13 percent to $4.2 billion.
Revenues from IBM’s Software segment fell 10 percent to $5.1 billion.
Revenues from IBM’s middleware products, which include WebSphere, Information Management, Tivoli, Workforce Solutions and Rational products, decreased 7 percent to $3.4 billion. Operating systems revenues of IBM fell 14 percent to $0.4 billion.
IBM said revenues from the Systems Hardware segment fell 39 percent to 1.5 billion.
Revenues from z Systems mainframe server products increased 15 percent. Delivery of z Systems computing power, as measured in MIPS, increased 18 percent. Revenues from IBM Power Systems fell 3 percent. Revenues from System Storage decreased 19 percent.