2024-04-16 04:01:35 ET
Summary
- IBM's AI development is primarily focused on the Software segment, but it has not significantly boosted revenue growth.
- The company has launched the watsonx AI platform for Enterprises, targeting consulting and software segments.
- IBM is shifting towards a software-focused strategy, with a focus on hybrid cloud solutions through the Red Hat OpenShift platform.
We previously analyzed that International Business Machines Corporation's ( IBM ) AI development predominantly revolved around the Software segment, representing 84.2% of AI projects. However, despite a diverse patent portfolio, AI has not notably boosted revenue growth as seen with the company's poor 5-year average growth (-4.4%). Although disclosed Intellectual Property and Custom Development Income increased by 8.4% to $664 mln in 2022, it fell short of the company's 10-year 17% average growth. Despite building a huge AI patent portfolio, we believe that the company has not fully capitalized on its portfolio, with IP income as a percentage of revenue growing modestly from 0.8% to 1.1%....
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IBM: Best Strategies For Success