In 2021, IBM’s software segment generated 24.14 billion U.S. dollars of the company’s revenue, which for 2021 stood at around 57.35 billion U.S. dollars. In 2016, IBM first changed its segment reporting to reflect the company’s shift away from being a hardware, software and services company, and towards becoming a cognitive solutions and cloud platform company. In the fourth quarter of 2021, the company changed its segment reporting again, to align it better with the company's platform centric approach to hybrid cloud and AI.
Reorganization of IBM's business operations
The change in business segment reporting followed IBM’s pursuit of management system and organizational changes. The company spun off its infrastructure services business into a separate company, Kyndryl. The new classification of business segments is based on multiple factors, such as the homogeneity of products, technologies, and the client base. The business is now organised into software, consulting, infrastructure, financing and other segments.
Moving to the hybrid cloud
One of IBM’s responses to its declining revenue is restructuring some of their business, moving into areas like cloud, blockchain, and artificial intelligence. The company looks to address its underinvestment in cloud by developing software and platform products. For example, its platform IBM Cloud aims to help customers shift their operations to the cloud environments. In early 2019, IBM acquired open source technology company Red Hat, which offers a hybrid cloud platform. As a major and innovative player in the industry, IBM consistently spends at least 5 billion U.S. dollars on research and development, such as on advances in quantum computing and artificial intelligence.
IBM revenue worldwide from 2010 to 2021, by segment
(in billion U.S. dollars)
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IBM. (March 7, 2022). IBM revenue worldwide from 2010 to 2021, by segment (in billion U.S. dollars) [Graph]. In Statista. Retrieved October 05, 2022, from https://www.statista.com/statistics/274823/ibms-global-revenue-by-segment/
IBM. "IBM revenue worldwide from 2010 to 2021, by segment (in billion U.S. dollars)." Chart. March 7, 2022. Statista. Accessed October 05, 2022. https://www.statista.com/statistics/274823/ibms-global-revenue-by-segment/
IBM. (2022). IBM revenue worldwide from 2010 to 2021, by segment (in billion U.S. dollars). Statista. Statista Inc.. Accessed: October 05, 2022. https://www.statista.com/statistics/274823/ibms-global-revenue-by-segment/
IBM. "Ibm Revenue Worldwide from 2010 to 2021, by Segment (in Billion U.S. Dollars)." Statista, Statista Inc., 7 Mar 2022, https://www.statista.com/statistics/274823/ibms-global-revenue-by-segment/
IBM, IBM revenue worldwide from 2010 to 2021, by segment (in billion U.S. dollars) Statista, https://www.statista.com/statistics/274823/ibms-global-revenue-by-segment/ (last visited October 05, 2022)