IBM Q1 results came in slightly below estimates and the shares fell slightly after hours. IBM used tight opex management to drive an EPS beat on slightly weaker-than-expected revenue growth. Cloud picked up, beating last quarter's growth rate (35% vs. 33% adjusted for currency). Cloud-as-a-Service, another area that catches investor attention, delivered trailing twelve-month growth of 61% YOY, compared to 63% adjusted for currency last quarter.
It highlights total cloud revenue of $14.6bn over the last 12 months; XaaS revenue was $8.6bn as an annual exit run rate in the quarter.
IBM claims to be the enterprise cloud leader with a data-first differentiation from the cloud offerings of Microsoft and Amazon. It points to
* IBM -- $14.6bn (12-month revenue through 1Q 2017)
* Microsoft -- $14bn (commercial cloud annualized revenue run rate)
* AWS -- $12.2bn (according to 2016 revenue)
* Google -- up to $10bn (as indicated in the company's "other" revenue category for 2016, which is where Google includes Cloud. Google doesn't break out cloud revenues).
Revenue by segment: Cognitive Solutions, $4.06bn (up 2.1%); Global Business Services, $4.01bn (down 3%); Technology Services and Cloud Platforms, $8.22bn (down 2.5%); Systems, $1.4bn (down 16.7%); Global Financing, $405m (down 1.2%).