Cloud growth fuels IBM profit beat | 2019-07-19

Cloud growth fuels IBM profit beat

19 July, 2019 12:00 AM printer

NEW YORK: International Business Machines Corp beat analysts' estimates for second-quarter profit on Wednesday, propped up by recurring growth in its high-margin cloud business.

The company is relying on its cloud business in the face of slowing growth in its legacy businesses, including mainframes and storage systems, report agencies.

Last week, it wrapped up its US$34 billion acquisition of Linux maker Red Hat Inc, its biggest deal so far, to expand its subscription-based software offerings.

Revenue from cloud business, the faster-growing service and a key metric for the company, grew 5per cent to US$4.8 billion during the quarter.