IBM 2014 Annual Report Download - page 5

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• IBM Watson Analytics, offering powerful cognitive and
visually intuitive analytics in the palm of your hand.
• A landmark partnership with Apple to bring mobility to
the enterprise and reimagine the work of professionals.
• A strategic alliance with Twitter to bring an entire new
category of Big Data to business.
These investments will contribute to the strong growth we
are seeing in our strategic imperatives, which deliver high
value and now represent a significant part of IBM. Together,
cloud, analytics, mobile, social and security generated
$25 billion of revenue in 2014, growing by 16 percent. Five years
ago, these businesses represented just 13 percent of our
revenue. Today, that has risen to 27 percent of IBM’s revenue.
Big Data and analytics. Our analytics business grew
7percent to $17 billion in 2014. We are driving growth by
helping our clients integrate all data sources — structured
and unstructured — and apply a range of analytics —
descriptive, predictive and prescriptive. We combine
this capability with deep knowledge of industries and
professions. Our analytics portfolio draws upon more than
30 acquisitions and includes nine Analytics Solutions
Centers with an ecosystem of more than 6,000 business
partners. Further, we are creating the next stage of Big
Data and analytics with cognitive computing.
Cloud. Our cloud business is growing rapidly — up 60
percent to $7 billion in 2014, with “as-a-service” at $3 billion,
up nearly 80 percent and exiting the year with a run rate of
$3.5 billion. IBM Cloud is set apart by focusing on hybrid
environments optimized for data and security, shaped by
our knowledge of the requirements of enterprise clients.
For example, the planetwide footprint of cloud centers that
we are building will provide clients the combination of
global and localized data access and security that they
need. This is unmatched in the industry.
Engagement, underpinned by security. In mobile,
our growth more than tripled in 2014. Going forward, we
expect this to benefit from the apps from our strategic
alliance with Apple and our global network of digital design
studios. Further, IBM is the global leader in enterprise
security, grounded not only in technology and our 3,700
patents, but in our experience-based understanding
of the changing nature of the challenge. Enter prises and
institutions discover that they cannot wall out attackers.
Twenty-first century security is a Big Data problem —
which is why our security business, with unequalled data
and analytics capability, grew 19 percent in 2014.
At the same time that we have been growing new businesses,
we have been reinventing our core franchises. Last year
we promised to address challenges in our Systems and
Technology business. We did so in 2014, with hardware going
from losses in the first half to nearly $400 million of profit in
the fourth quarter alone. That is a remarkable swing.
In transforming this business, we took several important actions:
• We sold our x86 server business and announced
the divestiture of our commercial semiconductor
technology business.
• We committed $3 billion over the next five
years to the development of next-generation
semi conductor technologies.
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