Enterprise IT vendor IBM’s revenue is on a free fall. The fourth quarter revenue of IBM fell 8.5 percent to $22.05 billion, while 2015 revenue dipped 11.9 percent to $92.79 billion.
IBM reported negative growth in all its segments.
IBM says it generated $8,126 million (-7 percent) revenue from Global Technology Services, $4,297 million (-9 percent) from Global Business Services, $6,767 million (-10.7 percent) from Software, $2,372 million (-1.4 percent) from Systems Hardware and $454 (-14.6 percent) from global financing in Q4 2015.
“In 2015, our strategic imperatives of cloud, analytics, mobile, social and security grew 26 percent to $29 billion and represent 35 percent of our total revenue,” said Ginni Rometty, chairman, president and chief executive officer of IBM.
Ginni Rometty said IBM invested aggressively in new opportunities such as Watson Health, Watson Internet of Things (IoT) and hybrid cloud.
The company’s investment in new areas is resulting into revenue growth. IBM’s revenue from cloud, analytics and engagement increased 10 percent in Q4, and 17 percent in 2015 to $28.9 billion.
Cloud revenues of IBM increased 43 percent. IBM revenues for cloud delivered as a service increased 50 percent to $4.5 billion. Revenues from business analytics increased 7 percent to $17.9 billion. Revenues from mobile more than tripled and from security increased 5 percent.
IBM said its revenue from Americas fell 8 percent to $10.3 billion in Q4. IBM revenues from Europe, Middle East and Africa dipped 9 percent to $7.3 billion. IBM’s revenue from Asia Pacific decreased 10 percent to $4.4 billion. Revenues from the BRIC countries fell 21 percent.
Global Technology Services revenues fell 7 percent to $8.1 billion. Global Business Services segment revenues dipped 10 percent to $4.3 billion. Revenues from Software declined 11 percent to $6.8 billion in the fourth quarter of 2015. Revenues from IBM’s key middleware products, which include WebSphere, Information Management, Tivoli, Workforce Solutions and Rational products, were $4.9 billion, down 10 percent. Operating systems revenues of $0.5 billion were down 12 percent.
IBM said revenues from the Systems Hardware segment totaled $2.4 billion for the quarter, down 1 percent.
Revenues from z Systems mainframe server products increased 16 percent, Power Systems fell 4 percent and System Storage decreased 11 percent.