"In GTS we are going to take aggressive structural actions to reposition the business overall," Kavanaugh said on Tuesday. He said the changes are meant to boost IBM's performance in hybrid cloud, whereby organizations rely on multiple computing environments.
The company generated $4.24 billion from its Global Business Services business, including application management, consulting and global process services. That's down slightly and just lower than the FactSet consensus estimate of $4.26 billion. IBM's Systems revenue was $3.04 billion, up 16% and exceeding the $2.84 billion FactSet consensus. Revenue from the z product line, including z15, was up 60% in the quarter.
In the fourth quarter IBM announced a "financial services-ready public cloud" offering that is expected to use the company's existing cloud infrastructure, and it appointed Thomas Buberl, CEO of insurance company AXA, to its board. And in the past 90 days the public has gotten clarity on Brexit and the first phase of a trade deal between the U.S. and China, Kavanaugh said.
Morgan Stanley analysts led by Katy Huberty cut their rating on IBM to equal-weight from overweight on Friday. "Even assuming modest Red Hat synergies, we now see long-term revenue growth at IBM as less likely without a more meaningful shift in the portfolio," the analysts wrote. "We see IT budget growth deteriorating in 2020 with risk of further cuts to core IBM profit pools including on-premise infrastructure, consulting, and outsourcing.
South Africa South Africa Latest News, South Africa South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CNBC - 🏆 12. / 72 Read more »
Source: CNBC - 🏆 12. / 72 Read more »
Source: CNBC - 🏆 12. / 72 Read more »
Source: BusinessInsider - 🏆 729. / 51 Read more »