Arvind Krishna, CEO of IBM, indicated that the corporation is relying on hybrid cloud and AI to fuel its development. Krishna revealed this during a Q1 2023 earnings call, and he added that the company’s sales increased by 4.5% year over year in constant currency and 0.4% in real dollars for the three months ending March 31.
He emphasized that advances in IBM’s software and consulting businesses had contributed to this expansion, with zSystems mainframe sales increasing by 11%. Overall infrastructure revenue, however, remained steady for the period.
Krishna remarked that consulting engagements have slowed, although this was mostly due to the discretionary nature of such jobs. He stated that while projects were being paused, they were not being cancelled. In the first quarter, IBM worked with more clients to realize the business benefits of a hybrid cloud strategy.
Krishna emphasized that IBM’s first-quarter performance demonstrated that clients continue to look to the firm for assistance in meeting today’s business demands while also preparing them for the future. He noted that IBM had a strong start to the year, with sales growth in the mid-single digits at constant currency, in line with its midterm plan, and growth in free cash flow. He also stated that clients throughout the world view technology as a critical source of competitive advantage, which supports the company’s revenue growth projections for the year.
The sources for this piece include an article in CIODIVE.
