(NEW YORK)-IBM released its quarterly earnings on July 20, 2020 which showed increased demand for AI applications as companies look to implement more machine learning into their overall operations.
IBM’s Cognitive Applications, which is part of their Cloud and Cognitive Software segment, saw revenues slip for the quarter, but did state strong demand for their hybrid cloud solutions and specific AI applications in the back half of the quarter.
Rob Enderle, principal analyst of the Enderle Group commented, “I’m anticipating really good news out of their AI efforts given how automation has become a really hot category during the pandemic”.
AI Growth During Pandemic
These results show first concrete signs that during demand for AI and automation has been pulled dramatically forward due to companies seeking to increased productivity during stressful economic times.
Just recently IBM (NYSE:IBM) and Verizon (NYSE:VZ) unveiled a partnership to develop new 5G and AI solutions for industrial customers. This new partnership will mainly focus on “edge computing,” which brings processing and storage solutions closer to a device’s physical location.
The partnership between the two tech and telecom giants will combine IBM’s AI, hybrid cloud, edge computing, asset management, and connectivity solutions with Verizon’s 5G and edge compute technologies. Let’s see how this deal could benefit both companies.
International Business Machines Corporation operates as an integrated solutions and services company worldwide. Its Cloud & Cognitive Software segment offers software for vertical and domain-specific solutions in health, financial services, and Internet of Things (IoT), weather, and security software and services application areas; and customer information control system and storage, and analytics and integration software solutions to support client mission critical on-premise workloads in banking, airline, and retail industries. It also offers middleware and data platform software, including Red Hat, which enables the operation of clients’ hybrid multi-cloud environments; and Cloud Paks, WebSphere distributed, and analytics platform software, such as DB2 distributed, information integration, and enterprise content management, as well as IoT, Blockchain and AI/Watson platforms. The company’s Global Business Services segment offers business consulting services; system integration, application management, maintenance, and support services for packaged software; finance, procurement, talent and engagement, and industry-specific business process outsourcing services; and IT infrastructure and platform services. Its Global Technology Services segment provides project, managed, outsourcing, and cloud-delivered services for enterprise IT infrastructure environments; and IT infrastructure support services. The company’s Systems segment offers servers for businesses, cloud service providers, and scientific computing organizations; data storage products and solutions; and z/OS, an enterprise operating system, as well as Linux. Its Global Financing segment provides lease, installment payment, loan financing, short-term working capital financing, and remanufacturing and remarketing services. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. The company was founded in 1911 and is headquartered in Armonk, New York.