International Business Machines (IBM) beat estimates for second-quarter profit on Monday and signalled that demand in its cloud computing business would get a boost as large corporations accelerate their digital shift due to the coronavirus crisis.
The company's shares rose 5 percent in after-hours trading.
IBM has jettisoned some of its legacy business to focus on the high-margin cloud computing business, an area that has seen a lot of action in recent years as companies ramp up their digital shift to boost efficiency.
"The trend we see in the market is clear. Clients want to modernise apps, move more workloads to the cloud and automate IT tasks," IBM's new boss Arvind Krishna said on a post-earnings call with analysts.
Revenue from the cloud business, previously headed by Krishna, rose 30 percent to $6.3 billion (roughly Rs. 47,000 crores) in the second quarter.
Krishna took over as chief executive officer from computer engineering salary, while appointing former Bank of America Corp's top technology executive, Howard Boville, as the new head of the cloud business.
The company's shares rose 5 percent in after-hours trading.
IBM has jettisoned some of its legacy business to focus on the high-margin cloud computing business, an area that has seen a lot of action in recent years as companies ramp up their digital shift to boost efficiency.
"The trend we see in the market is clear. Clients want to modernise apps, move more workloads to the cloud and automate IT tasks," IBM's new boss Arvind Krishna said on a post-earnings call with analysts.
Revenue from the cloud business, previously headed by Krishna, rose 30 percent to $6.3 billion (roughly Rs. 47,000 crores) in the second quarter.
Krishna took over as chief executive officer from computer engineering salary, while appointing former Bank of America Corp's top technology executive, Howard Boville, as the new head of the cloud business.
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