Summary
- IBM is counting on Red Hat's OpenShift, the self-contained Kubernetes solution, to help it gain ground in the cloud market.
- By acquiring Red Hat, IBM plans to become the leading hybrid cloud provider.
- It plans on offering companies the only open cloud solution that will help unlock this identified potential.
IBM's (NYSE:IBM) recently reported its fourth quarter earnings that surpassed market expectations and sent the stock climbing 7% higher in the after-hours session. This also was the first time since 2011 that the company reported growth in revenues for the full year. Its robust performance was driven by growth in the cloud segment - an area of focus for IBM's turnaround strategy.
IBM's Financials
Revenues for the fourth quarter fell 3.5% to $21.76 billion, ahead of the Street's forecast of $21.73 billion. Adjusted earnings of $4.87 for the quarter also were better than the Street's estimates of $4.82.
By segment, revenues from Cognitive Solutions that includes solutions software and transaction processing software were flat over the year at $5.5 billion. The market was looking for revenues of $5.3 billion from the segment. The Global Business Services segment including consulting, application management and global process services grew 4% to $4.3 billion. Technology Services & Cloud Platforms segment including infrastructure services, technical support services and integration software fell 3% to $8.9 billion. Systems revenues were down 21% to $2.6 billion and Global Financing revenues fell 11% to $402 million.
