IBM Posts Positive Earnings; ‘Strategic Imperatives’ Above 50% of Business

By Doug Black

January 23, 2019

For IBM watchers at the advanced scale/HPC/open source/cloud/AI-related end of the technology industry, Big Blue’s release late yesterday of Q4 and 2018 earnings painted a positive picture around the company’s “strategic imperatives,” including IBM Cloud, Power9 and its AI-related initiatives.

Wall Street loved the results: at this writing the stock was up nearly 8 percent on the day to $132 per share.

IBM’s Ginni Rometty (source: IBM)

Having said that, Q4 revenue of $21.8 billion was down 3 percent (down 1 percent adjusted for currency), while the gross profit margin for the quarter was up 10 basis points, year-to-year.

For all of 2018, revenue of $79.6 billion was up 1 percent over the previous year, while net income was $8.7 billion, up 52 percent over 2017. Revenues from strategic imperatives totaled just under $40 billion, up 9 percent for the year, while cloud revenue came to $19.2 billion, up 12 percent.

“In 2018 we returned to full-year revenue growth, reflecting growing demand for our services and leadership solutions in hybrid cloud, AI, analytics and security,” said Ginni Rometty, IBM chairman, president and chief executive officer. “Major clients worldwide, such as BNP Paribas, are turning to the IBM Cloud and our unmatched industry expertise to transform their businesses and drive innovation.”

During a conference call with financial analysts, IBM Senior Vice President and Chief Financial Officer James Kavanaugh highlighted the company’s progress in its strategic technologies, noting that cloud-delivered-as-a-service revenues of more than $12 billion, up 21 percent over 2017.

“This is a solid base of cloud and cognitive capabilities, and we’re continuing to deliver innovation in these high value areas,” Kavanaugh said. “For example, in the fourth quarter we introduced AI OpenScale, a platform to manage the lifecycle of all forms of AI models, and Multicloud Manager, a service to deploy and manage complete applications, in any cloud environment.”

He also noted the successful installation of Power9-based systems (named the two most powerful supercomputers in the world) at two U.S. Department of Energy national laboratories along with what he said is the world’s first commercial quantum computer available on the IBM Cloud, which “ExxonMobil is already using it to help address its most complex business challenges, such as energy exploration and chemicals manufacturing.”

“From my perspective, we enter 2019 with a much improved business profile in terms of, one, driving operating leverage…,” he said, “and two…, our strategic imperatives right now, the high value emerging segments in the IT industry, are now consistently over 50 percent of IBM’s business.”

IBM executives also took the opportunity to portray the company’s pending acquisition of open source trailblazer Red Hat as positioning it to lead the hybrid cloud segment.

“When you look at Red Hat, for the first time ever Linux has surpassed Microsoft [Windows] on operating systems, both on the on-prem side and in the cloud,” IBM CIO James Kavanaugh told CNBC after the company’s earnings call on Tuesday.

The Red Hat acquisition, which IBM expects to close in the second half of this year, means “we own the starting point and we now own the destination point,” Kavanaugh added.

Technology industry analyst Patrick Moorhead, president and principal analyst at Moor Insights & Strategy, had a mixed response to the announcement.

“I was happy to see IBM’s improved earnings, but I’m still concerned about its revenue declines,” he said. “I was the happiest to see that Power Systems was continuing its revenue gains and I believe its big national labs wins and enterprise customers performing ML and DL are starting to kick in.”

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

Amid Upbeat Earnings, Intel to Cut 1% of Employees, Add as Many

January 24, 2020

For all the sniping two tech old timers take, both IBM and Intel announced surprisingly upbeat earnings this week. IBM CEO Ginny Rometty was all smiles at this week’s World Economic Forum in Davos, Switzerland, after  Read more…

By Doug Black

Indiana University Dedicates ‘Big Red 200’ Cray Shasta Supercomputer

January 24, 2020

After six months of celebrations, Indiana University (IU) officially marked its bicentennial on Monday – and it saved the best for last, inaugurating Big Red 200, a new AI-focused supercomputer that joins the ranks of Read more…

By Staff report

What’s New in HPC Research: Tsunamis, Wildfires, the Large Hadron Collider & More

January 24, 2020

In this bimonthly feature, HPCwire highlights newly published research in the high-performance computing community and related domains. From parallel programming to exascale to quantum computing, the details are here. Read more…

By Oliver Peckham

Toshiba Promises Quantum-Like Advantage on Standard Hardware

January 23, 2020

Toshiba has invented an algorithm that it says delivers a 10-fold improvement for a select class of computational problems, without the need for exotic hardware. In fact, the company's simulated bifurcation algorithm is Read more…

By Tiffany Trader

Energy Research Combines HPC, 3D Manufacturing

January 23, 2020

A federal energy research initiative is gaining momentum with the release of a contract award aimed at using supercomputing to harness 3D printing technology that would boost the performance of power generators. Partn Read more…

By George Leopold

AWS Solution Channel

Challenging the barriers to High Performance Computing in the Cloud

Cloud computing helps democratize High Performance Computing by placing powerful computational capabilities in the hands of more researchers, engineers, and organizations who may lack access to sufficient on-premises infrastructure. Read more…

IBM Accelerated Insights

Intelligent HPC – Keeping Hard Work at Bay(es)

Since the dawn of time, humans have looked for ways to make their lives easier. Over the centuries human ingenuity has given us inventions such as the wheel and simple machines – which help greatly with tasks that would otherwise be extremely laborious. Read more…

TACC Highlights Its Upcoming ‘IsoBank’ Isotope Database

January 22, 2020

Isotopes – elemental variations that contain different numbers of neutrons – can help researchers unearth the past of an object, especially the few hundred isotopes that are known to be stable over time. However, iso Read more…

By Oliver Peckham

Toshiba Promises Quantum-Like Advantage on Standard Hardware

January 23, 2020

Toshiba has invented an algorithm that it says delivers a 10-fold improvement for a select class of computational problems, without the need for exotic hardware Read more…

By Tiffany Trader

In Advanced Computing and HPC, Dell EMC Sets Sights on the Broader Market Middle 

January 22, 2020

If the leading advanced computing/HPC server vendors were in the batting lineup of a baseball team, Dell EMC would be going for lots of singles and doubles – Read more…

By Doug Black

DNA-Based Storage Nears Scalable Reality with New $25 Million Project

January 21, 2020

DNA-based storage, which involves storing binary code in the four nucleotides that constitute DNA, has been a moonshot for high-density data storage since the 1960s. Since the first successful experiments in the 1980s, researchers have made a series of major strides toward implementing DNA-based storage at scale, such as improving write times and storage density and enabling easier file identification and extraction. Now, a new $25 million... Read more…

By Oliver Peckham

AMD Recruits Intel, IBM Execs; Pending Layoffs Reported at Intel Data Platform Group

January 17, 2020

AMD has raided Intel and IBM for new senior managers, one of whom will replace an AMD executive who has played a prominent role during the company’s recharged Read more…

By Doug Black

Atos-AMD System to Quintuple Supercomputing Power at European Centre for Medium-Range Weather Forecasts

January 15, 2020

The United Kingdom-based European Centre for Medium-Range Weather Forecasts (ECMWF), a supercomputer-powered weather forecasting organization backed by most of Read more…

By Oliver Peckham

Julia Programming’s Dramatic Rise in HPC and Elsewhere

January 14, 2020

Back in 2012 a paper by four computer scientists including Alan Edelman of MIT introduced Julia, A Fast Dynamic Language for Technical Computing. At the time, t Read more…

By John Russell

White House AI Regulatory Guidelines: ‘Remove Impediments to Private-sector AI Innovation’

January 9, 2020

When it comes to new technology, it’s been said government initially stays uninvolved – then gets too involved. The White House’s guidelines for federal a Read more…

By Doug Black

IBM Touts Quantum Network Growth, Improving QC Quality, and Battery Research

January 8, 2020

IBM today announced its Q (quantum) Network community had grown to 100-plus – Delta Airlines and Los Alamos National Laboratory are among most recent addition Read more…

By John Russell

Using AI to Solve One of the Most Prevailing Problems in CFD

October 17, 2019

How can artificial intelligence (AI) and high-performance computing (HPC) solve mesh generation, one of the most commonly referenced problems in computational engineering? A new study has set out to answer this question and create an industry-first AI-mesh application... Read more…

By James Sharpe

SC19: IBM Changes Its HPC-AI Game Plan

November 25, 2019

It’s probably fair to say IBM is known for big bets. Summit supercomputer – a big win. Red Hat acquisition – looking like a big win. OpenPOWER and Power processors – jury’s out? At SC19, long-time IBMer Dave Turek sketched out a different kind of bet for Big Blue – a small ball strategy, if you’ll forgive the baseball analogy... Read more…

By John Russell

Cray, Fujitsu Both Bringing Fujitsu A64FX-based Supercomputers to Market in 2020

November 12, 2019

The number of top-tier HPC systems makers has shrunk due to a steady march of M&A activity, but there is increased diversity and choice of processing compon Read more…

By Tiffany Trader

Julia Programming’s Dramatic Rise in HPC and Elsewhere

January 14, 2020

Back in 2012 a paper by four computer scientists including Alan Edelman of MIT introduced Julia, A Fast Dynamic Language for Technical Computing. At the time, t Read more…

By John Russell

Crystal Ball Gazing: IBM’s Vision for the Future of Computing

October 14, 2019

Dario Gil, IBM’s relatively new director of research, painted a intriguing portrait of the future of computing along with a rough idea of how IBM thinks we’ Read more…

By John Russell

Intel Debuts New GPU – Ponte Vecchio – and Outlines Aspirations for oneAPI

November 17, 2019

Intel today revealed a few more details about its forthcoming Xe line of GPUs – the top SKU is named Ponte Vecchio and will be used in Aurora, the first plann Read more…

By John Russell

D-Wave’s Path to 5000 Qubits; Google’s Quantum Supremacy Claim

September 24, 2019

On the heels of IBM’s quantum news last week come two more quantum items. D-Wave Systems today announced the name of its forthcoming 5000-qubit system, Advantage (yes the name choice isn’t serendipity), at its user conference being held this week in Newport, RI. Read more…

By John Russell

Dell Ramps Up HPC Testing of AMD Rome Processors

October 21, 2019

Dell Technologies is wading deeper into the AMD-based systems market with a growing evaluation program for the latest Epyc (Rome) microprocessors from AMD. In a Read more…

By John Russell

Leading Solution Providers

SC 2019 Virtual Booth Video Tour

AMD
AMD
ASROCK RACK
ASROCK RACK
AWS
AWS
CEJN
CJEN
CRAY
CRAY
DDN
DDN
DELL EMC
DELL EMC
IBM
IBM
MELLANOX
MELLANOX
ONE STOP SYSTEMS
ONE STOP SYSTEMS
PANASAS
PANASAS
SIX NINES IT
SIX NINES IT
VERNE GLOBAL
VERNE GLOBAL
WEKAIO
WEKAIO

IBM Unveils Latest Achievements in AI Hardware

December 13, 2019

“The increased capabilities of contemporary AI models provide unprecedented recognition accuracy, but often at the expense of larger computational and energet Read more…

By Oliver Peckham

SC19: Welcome to Denver

November 17, 2019

A significant swath of the HPC community has come to Denver for SC19, which began today (Sunday) with a rich technical program. As is customary, the ribbon cutt Read more…

By Tiffany Trader

Jensen Huang’s SC19 – Fast Cars, a Strong Arm, and Aiming for the Cloud(s)

November 20, 2019

We’ve come to expect Nvidia CEO Jensen Huang’s annual SC keynote to contain stunning graphics and lively bravado (with plenty of examples) in support of GPU Read more…

By John Russell

Top500: US Maintains Performance Lead; Arm Tops Green500

November 18, 2019

The 54th Top500, revealed today at SC19, is a familiar list: the U.S. Summit (ORNL) and Sierra (LLNL) machines, offering 148.6 and 94.6 petaflops respectively, Read more…

By Tiffany Trader

51,000 Cloud GPUs Converge to Power Neutrino Discovery at the South Pole

November 22, 2019

At the dead center of the South Pole, thousands of sensors spanning a cubic kilometer are buried thousands of meters beneath the ice. The sensors are part of Ic Read more…

By Oliver Peckham

Azure Cloud First with AMD Epyc Rome Processors

November 6, 2019

At Ignite 2019 this week, Microsoft's Azure cloud team and AMD announced an expansion of their partnership that began in 2017 when Azure debuted Epyc-backed instances for storage workloads. The fourth-generation Azure D-series and E-series virtual machines previewed at the Rome launch in August are now generally available. Read more…

By Tiffany Trader

Intel’s New Hyderabad Design Center Targets Exascale Era Technologies

December 3, 2019

Intel's Raja Koduri was in India this week to help launch a new 300,000 square foot design and engineering center in Hyderabad, which will focus on advanced com Read more…

By Tiffany Trader

Summit Has Real-Time Analytics: Here’s How It Happened and What’s Next

October 3, 2019

Summit – the world’s fastest publicly-ranked supercomputer – now has real-time streaming analytics. At the 2019 HPC User Forum at Argonne National Laborat Read more…

By Oliver Peckham

  • arrow
  • Click Here for More Headlines
  • arrow
Do NOT follow this link or you will be banned from the site!
Share This