Over the last 10 years, IBM has succeeded in transitioning from a mainframe systems company to a top provider of IT business services. This business now accounts for about half of its revenues.
For its latest quarterly financial results in October, Big Blue posted a dip in net profit, but topped Wall Street expectations as its consulting and services business rebounded for a second straight quarter. Third-quarter net income dipped to US$1.52 billion, from a restated US$1.55 billion, in the year-earlier period.
Revenue at IBM fell 7.8 percent to US$21.5 billion from US$23.4 billion a year earlier, reflecting the sale of its PC business to Chinese computer giant Lenovo. Selling off the PC division made way for IBM to focus more on its business services.
According to Reuters, IBM suffered a slowdown in IT services earlier this year, but the business improved after signing a series of multibillion-dollar deals. In September, IBM was one of five companies that clinched a five-year deal worth US$2.2 billion with Dutch bank ABN Amro. Under the deal, IBM will take over management of most of the Dutch bank's servers, storage systems, desktops, printers and personal digital assistants globally.
For fiscal year 2004 ended December, the company recorded US$96.3 billion in revenues, or a 11.7 percent growth over the previous year.