Petroc Taylor
Research expert covering global developments in the use of data
From the floppy disk to the ATM, IBM has pioneered a remarkable range of crucial technologies. Founded in 1911 as the Computing-Tabulating-Recording Company (CTR), the company took on the IBM moniker in 1924, and became defined by its ability to adapt and reinvent amid the seismic technological shifts of the late twentieth century. However, various market challenges saw a decline in sales through the 2010s, with annual revenue falling to around 55 billion U.S. dollars in 2020, down from over 100 billion U.S. dollars a decade prior. IBM’s focus currently lies on AI (artificial intelligence) and hybrid cloud technologies, with its innovations in these fields backed by research, development, and engineering expenditure of over six billion U.S. dollars.
IBM has reiterated its commitment to hybrid cloud and AI innovation. In this vein, the company has made several key acquisitions, including the hybrid cloud firm Apptio and data integration platform StreamSets. IBM hopes that such strategic investment will aid its business transformation towards a platform centric model as it seeks to remain a tech pioneer for years to come.
IBM streamlines its business operations
IBM reorganized its business divisions in 2021, streamlining its operations and separating from the firm’s managed infrastructure services business Kyndryl. The software segment, previously titled cloud & cognitive software, is the company’s largest, accounting for over 40 percent of total revenue in 2023. This share includes revenue generated by Red Hat, the AI open-source software company that IBM acquired for 34 billion U.S. dollars in 2019. The company’s consulting segment, meanwhile, accounted for around a third of total revenue, with IBM consulting on a range of business process and application management services, with an emphasis on AI workflows and applications for hybrid cloud environments.IBM continues to innovate
IBM is responsible for some of the most groundbreaking inventions in the technology industry: the hard disk drive (HDD), the Universal Product Code (UPC), and dynamic random-access memory (DRAM). The company continues to innovate, ranking first among companies with the most U.S. patents granted and a leading owner of machine learning and AI patents. Alongside this, IBM has positioned itself as a leader in environmental responsibility. The company has reduced its greenhouse gas emissions in recent years, and has sought to improve the power usage effectiveness (PUE) of its data centers by enhancing IT server efficiency.IBM has reiterated its commitment to hybrid cloud and AI innovation. In this vein, the company has made several key acquisitions, including the hybrid cloud firm Apptio and data integration platform StreamSets. IBM hopes that such strategic investment will aid its business transformation towards a platform centric model as it seeks to remain a tech pioneer for years to come.
