IBM 2015 Annual Report Download - page 34

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32 Management Discussion
International Business Machines Corporation and Subsidiary Companies
Signings include GTS Outsourcing, ITS, GBS Outsourcing and
Consulting and Systems Integration contracts. Contract exten-
sions and increases in scope are treated as signings only to the
extent of the incremental new value. Maintenance is not included
in signings as maintenance contracts tend to be more steady state,
where revenues equal renewals.
Contract portfolios purchased in an acquisition are treated as
positive backlog adjustments provided those contracts meet the
company’s requirements for initial signings. A new signing will be
recognized if a new services agreement is signed incidental or
coincidental to an acquisition or divestiture.
($ inmillions)
For the year ended December 31: 2015 2014
Yr.-to-Yr.
Percent
Change
Yr.-to-Yr.
Percent Change
Adjusted for
Currency
Total sign ings $48,243 $51,569 (6.5)% 2.8%
Outsourcing signings $25,196 $26,517 (5.0)% 4.9%
Transactional signings 23,046 25,052 (8.0) 0.5
Software
($ inmillions)
For the year ended December 31: 2015 2014
Yr.-to-Yr.
Percent
Change
Yr.-to-Yr.
Percent Change
Adjusted for
Currency
Software external revenue $22,932 $25,434 (9.8)% (3.5)%
Middleware $19,473 $21,474 (9.3)% (3.0)%
Key branded middleware 15,778 17,098 (7.7) (1.5)
WebSphere (5.3) 0.2
Information Management (8.0) (1.6)
Workforce Solutions (8.1) (0.6)
Tivoli (6.3) 0.1
Rational (20.3) (15.1)
Other middleware 3,695 4,376 (15.6) (8.7)
Operating systems 1,815 2,119 (14.3) (8.1)
Other 1,644 1,841 (10.7) (4.9)
Software revenue of $22,932million decreased 9.8percent as
reported and 4percent adjusted for currency in 2015 compared
to the prior year. Year-to-year software revenue performance
reflected a decrease in middleware with declines in transactional
revenue and a continuing headwind from operating systems.
Key branded middleware revenue of $15,778 million, which
accounted for approximately 69percent of total software revenue
in 2015, decreased 7.7percent as reported and 2percent adjusted
for currency compared to the prior year. Within key branded
middleware, WebSphere decreased 5.3percent (flat adjusted
for currency), Information Management decreased 8.0percent
(2percent adjusted for currency), Workforce Solutions decreased
8.1percent (1percent adjusted for currency), Tivoli decreased
6.3percent (flat adjusted for currency), and Rational decreased
20.3percent (15percent adjusted for currency). Other middleware
decreased 15.6percent as reported and 9percent adjusted for
currency. Operating systems decreased 14.3percent as reported
and 8percent adjusted for currency.