IBM earnings beat estimates on cloud strength

International Business Machines Corp posted quarterly revenue and profit above analysts’ estimates on Monday, riding on the strength of its high-margin cloud computing business.

IBM has jettisoned some of its legacy business to focus on cloud computing, an area that has seen a lot of action in recent years as companies ramp up their digital shift to control costs and boost efficiency.

Revenue from the cloud business, previously headed by IBM’s new boss Arvind Krishna, rose 30 per cent to $6.3 billion in the second quarter.

Krishna took over as chief executive officer from Ginni Rometty in April, while appointing former Bank of America Corp’s top technology executive Howard Boville as the new head of IBM’s cloud business.