IBM : CFO discusses how the “hybrid cloud platform-centric strategy” is driving the company’s growth22. March 2023
New York, 3/22/2023
In 2022, IBM grew revenue 12% to $60.5 billion, according to CFO Jim Kavenaugh, with its software, consulting and infrastructure businesses all posting double-digit growth.,In his speech at the recent Morgan At the Stanley Technology, Media and Telecommunications Conference, the manager remained confident for the current year.
He noted that IBM is “fundamentally a different company than it was three or five years ago” because they are very focused on winning in hybrid cloud and AI. During a lively discussion, Kavanaugh made the points that are intended to show the importance of AI for the high-tech company at this point in time: “I think it fits very well with our four beliefs around IBM. 1. Technology is the only deflationary force…2. AI is the vehicle of productivity…3. Now coming back to why we bought RedHat: we believe that digital reinvention requires a heterogeneous, hybrid environment and 4. Open source is now truly the source of innovation.”
Regarding telecom players, according to the IBM – executive – “RedHat understands the interplay between cellular networks and cloud computing at the edge of the network and offers open-source software and middleware to tie systems together and distribute them across a computing infrastructure. As operators, telcos, hyperscalers, and combinations thereof seek to monetize 5G and edge computing with new enterprise businesses, RedHat is essentially relevant to all as it works with operators, enterprises, and just about everyone else.”
Kavenaugh admitted, “We had differing opinions in the market about 1st hybrid cloud and 2nd AI…workloads wouldn’t be 100% in the public cloud…RedHat is the foundation of this hybrid cloud, platform-centric economic model.”
Regarding the finances, he added this hint: every dollar RedHat makes is pulled through the business, which brings in $3 to $5 in software and $6 to $8 in consulting.
His conclusion: from hybrid cloud to AI, he expects “explosive growth” in the coming decade. He identified four primary use cases: AI for interaction and entertainment for applications like customer cars; Business process reengineering, AI for IT automation, what AI means for coding, and embedding AI in cybersecurity solutions.”