IBM grows cloud and Smarter Planet business, but services struggle

IBM has reported its Smarter Planet and cloud business achieved double digital growth in 2011

IBM has reported its Smarter Planet business grew 25% and cloud business achieved double-digit growth in 2011, although its systems and technology business shrank 7%.

For the first quarter of 2012, IBM posted a post-tax profit of $3.1bn compared with $2.9bn in the first quarter of 2011, an increase of 7%.

Mainframe sales plummeted 25%, although IBM claimed its revenue based on MIPs (the licensing used for mainframe systems) decreased 5%.

Sales of IBM’s middleware products – which include WebSphere, Information Management, Tivoli, Lotus and Rational products – increased 7% to $3.5bn, an increase of 7% versus the first quarter of 2011. 

Revenues from IBM’s business analytics operations across services, software and hardware segments increased 14%.

Ginni Rometty, IBM president and chief executive officer, said: “We delivered another excellent software performance, expanded services margins and continued the momentum in our growth initiatives.”

IBM’s services division struggled in the quarter. Its Global Technology Services segment revenues increased 2% to $10bn. Global Business Services segment revenues were down 2% to $4.6bn.

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