In its first earnings call after divesting its Managed Services division into Kyndryl, an independent company, IBM has confirmed that he has obtained $6.2 billion in revenue from its dedicated hybrid cloud footprint alone between October and December 202116% more than in the last three months of 2020. Throughout the year, the company has entered 20.2 billion thanks to the hybrid cloud, 20% more than in 2020.
In total, in the fourth quarter of 2021, IBM reported revenue of $16.7 billion, up 6.5% year-over-year, and earned . (Provigil) 35 per share.
The company has changed information about its divisions. Thus, from now on it will reveal its results grouped into Software, which includes the areas of Solutions and Hybrid Platform and Transaction Process; Consulting, which groups Business Transformation, Technological Consulting and Application Operations; Infrastructure, which includes Infrastructure Support and Hybrid Infrastructure; and Finance, which includes company and client financing.
In the last quarter of 2021, Software has entered 7.30 million dollars, 8.2% more. Within this division, the Hybrid Platform and Solutions area is up 7% in revenue, with Red Hat improving 19%, Automation 13% and Data & Artificial Intelligence 1%. Additionally, Transaction Processing improved 11% and Hybrid Cloud Software improved 22%. Meanwhile, the Security area had 3% less income.
Between October and December 2021, the IBM Consulting division entered 4,700 million dollars, 13.1% more. Within this category, the Business Transformation area improved revenue by 18%, and the Technology Consulting area by 14%. Application operations entered 6% and the consulting segment corresponded to the hybrid cloud had revenues higher by 31% than in the same period of 2020.
In total, infrastructure revenues reached 4.4 billion dollars, 0.2% less. In this category, the Hybrid Infrastructure area maintained the same level of revenue as in the last quarter of 2020. As for IBM Z sales, its revenue fell by 65%. Lastly, Distributed Infrastructure revenues were up 5%. In addition, Infrastructure Support grew 1% in revenue, while Hybrid Cloud Infrastructure segment revenue fell 12%. Finally, the IBM Finance area recorded revenues of 200 million dollars, 29.4% less.
The IBM CEO Arvin Krishnahighlighted that the company increased «revenue in the fourth quarter, with hybrid cloud adoption driving growth in software and consulting. Our fourth quarter results give us confidence in our ability to meet our targets for sustained revenue growth of 4-6% and strong cash flow in 2022«.
For his part, the IBM CFO James Kavanaughhas pointed out that «in 2021, we continue to invest for the future by increasing investment in research and development, expanding our ecosystem and purchasing 15 companies to strengthen our AI and hybrid cloud capabilities«.
