International Business Machines Corp.(NYSE:IBM) has been riding high since the summer months of last year, last May the company which is known as the giant in the computer sector, announced big news. IBM was one of the last companies of its size to start using and expanding its cloud service, in May they stated that the company will start exploring opportunities in the cloud sector in efforts of bring in revenue. The company which was not performing up to par at that time knew that something needed to change.
Since then the company has acquired many cloud serving companies big and small, it is an understatement to say that IBM has caught a second wind. The revenue streams have drastically gone up in the past year. This morning IBM held an investor meeting in New York, there the company spoke about the newest technology services the company has to offer. What the audience gained from the meeting wasn’t the knowledge about the services and products but the confidence the company has. The IBM executives stated that the company is targeting $40 billion in annual revenues from its cloud sector by 2018. Though skeptics say the $40 billion is very aggressive, the company believes that out of $90 billion in total revenues $40 billion will come out of the “strategic imperatives” which is namely cloud, analytics, mobile software.
In 2014, the company generated $25 billion in revenue for IBM which was nearly 30% of the total $93 billion in sales. This year alone IBM has spent $4 billion on the expanding the sector, IBM says its long-term plan is to hit “low single-digit” revenue growth and “high single-digit” growth in operating earnings per share.
The future looks very bright for IBM…