Cutting edge technology

Introduction: IBM pioneered a new era of computing, and it has developed rapidly. In 2008, revenue exceeded $100 billion (Microsoft's 2018 fiscal year revenue exceeded the $100 billion mark for the first time) and surpassed Microsoft in 2011. The second largest technology company in the world, second only to Apple.

IBM, born in 1911, has a history of more than 100 years. It is not only one of the most representative enterprises in Evergreen, but also has been successfully transformed into the scientific and technological community after many successful transformations. It is still important to the development of global science and technology. Let him become one of the classic cases of global enterprise transformation. This blue giant can stand for centuries. The core is continuous innovation, and it leads every information technology revolution, has a keen insight into new technologies, and has achieved gorgeous transformation many times. Although the current competitive landscape is fierce, IBM actively embraces things. Networking, cloud computing and artificial intelligence are now delivering results.

IBM resumed double revenue and profit growth in 2018, with annual revenues up 1% year-on-year to $79.6 billion, but net profit growth was fast, up 52% ​​year-on-year to $8.7 billion. CEO Luo Ruilan said: In 2018, IBM's annual revenue recovery growth reflects the growing demand for services and leading solutions in the hybrid cloud, artificial intelligence, big data analytics and security sectors.

The Road to Difficult Transformation

IBM pioneered a new era of computing and achieved rapid growth, with revenues exceeding $100 billion in 2008 (Microsoft's 2018 fiscal year revenue exceeded $100 billion for the first time) The mark, and in 2011, surpassed Microsoft to become the world's second largest technology company, second only to Apple. This is a successful business case since Peng Mingsheng took over and led IBM in 2002 and became a classic business case for major business schools in the United States. Under the leadership of Peng Mingsheng, the revenue in 2008 reached a record high of 103.6 billion US dollars.

In the period of Peng Mingsheng's leadership of IBM, with a keen insight, in 2009, he put forward the concept of a smarter planet, and guided the transformation of information technology into the Internet of Things, which also set off a wave of smart city construction around the world. As one of the earliest implementation of the Internet of Things transformation giant, it also promoted sustained growth in performance. In 2011, when he stepped down as CEO, the market value not only surpassed Microsoft, but also slightly increased revenue to $106.9 billion and net profit of $15.9 billion.

[123Unfortunately, since January 1, 2012, after the CEO of IBM was handed over to Luo Ruilan, the performance began to decline. Yang Jianyong, senior consultant of the Internet of Things, pointed out that IBM's 2012 revenue was 104.5 billion US dollars, down 2% year-on-year. Revenue in 2013 fell 5% year-on-year to $99.8 billion, a decline that continued until 2017.

In the gambling cloud computing business, IBM faced strong rivals including Amazon, Microsoft and Google, which caused IBM to be in a leading position in the cloud service, due to the loss of Amazon and Microsoft, resulting in overall performance The decline, this century-old blue giant is in the most difficult period.

Double-income growth in revenue

Difficult to transform for many years, until 2018, revenue and profits have both growth, although the revenue is still less than 100 billion US dollars, but gambling for many years of cloud computing And artificial intelligence, with the growing scale of IoT deployment, IBM operations began to achieve results.

On the 23rd of this month, IBM released a financial report showing that revenue in 2018 increased slightly by 1% to US$79.6 billion, and net profit was US$8.7 billion, up 52% ​​year-on-year. This is the first time since 2012. Achieve double growth in revenue and profit. In addition, IBM is able to help customers deploy cloud solutions across public, private and cloudy environments, driving cloud service revenues up 12% to $19.2 billion.

Strategic business revenue increased 9% year-on-year to US$39.8 billion, and its stock price soared due to strong revenue. It rose 8.46% on January 23, and the market value as of today is US$120.4 billion. The giant can still bring surprises to Wall Street.

IBM, which has been silent for many years, engaged in a big event last year, acquiring Red Hat for $34 billion. Red Hat is driving open source technology innovation as one of the most successful platforms for open source software. I hope that in enhancing the competitiveness of cloud computing, the combination of the two will help to develop a new development path to protect against the threats brought by Amazon and Microsoft.

In addition, IBM Watson Studio and Watson Machine Learning utilize NVIDIA GPUs to enable data scientists and AI developers to build, deploy and run faster models in a cloudy environment with IBM and introduce new AI OpenScThe ale technology platform addresses many of the barriers to artificial intelligence applications.

Finally

With the commercialization of 5G technology, the Internet of Things will be more popular, and in the cloud AI service, there is huge wealth of data analysis and application, IBM is facing big data, The cloud computing and artificial intelligence transformation opportunities have been basically completed in the transformation phase of IBM in 2017. It has become a cognitive solution and cloud platform company, achieving revenue, operating profit and earnings per share growth by 2018, indicating the blue giant. The transformation has shown results, but it is a long way to go to achieve a gorgeous turn.

文/杨剑勇

Author is Yang Jianyong, Senior Consultant of Internet of Things, 2016 Top 10 Finance and Economics Media from Media, 2017 and 2018 Netease Best Signed Author, Dedicated to Deep Interpretation of Internet of Things Cutting-edge technologies such as economics and artificial intelligence are based on insights into future IoT and trends, and opinions and research strategies are cited by many authoritative media and well-known companies.

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