Latest news with #IBMZ
Yahoo
10-06-2025
- Business
- Yahoo
IBM's Software Segment Growth Picks Up: A Sign of More Upside?
International Business Machines Corporation's IBM Software segment is increasingly gaining traction with an increasing demand for a focused portfolio that provides end-to-end hybrid cloud and AI capabilities. The segment revenues in the first quarter of 2025 increased to $6.34 billion from $5.9 billion a year ago, driven by growth in Hybrid Platform & Solutions, Red Hat, Automation, Data & AI and Transaction Processing, backed by a strong focus on product buyout of California-based software company HashiCorp Inc. for an enterprise value of $6.4 billion has brought powerful synergies across key strategic growth areas of IBM, such as Red Hat, watsonx and IT Automation solutions. HashiCorp's tools, Terraform and Vault, have been integrated with IBM's Red Hat platforms to enhance cloud infrastructure management and hybrid cloud security, including for IBM Z. The addition of the new cutting-edge products has significantly improved IBM Software's ability to help organizations optimize IT spending, reduce cloud costs and boost overall efficiency through automation. With a surge in traditional cloud-native workloads and associated applications, along with a rise in generative AI deployment, there is a radical expansion in the number of cloud workloads that enterprises are currently managing. This has resulted in heterogeneous, dynamic and complex infrastructure strategies, which, in turn, have led firms to undertake a cloud-agnostic and interoperable approach to highly secure multi-cloud management. Our revenue estimate for the segment is pegged at $7.52 billion, indicating year-over-year growth of 11.6% at constant currency. Much of this growth is expected to come from Hybrid Cloud businesses (up 23% to $1.9 billion) and Automation (up 15.4% to $1.87 billion). Microsoft Corporation MSFT has doubled down on the cloud computing opportunity. Azure's increased availability in more than 60 announced regions globally has strengthened Microsoft's competitive position in the cloud computing market. Operating through a vast network of global data centers that ensure high availability and reliability for applications, Azure offers seamless access to all the services included in the portal once customers subscribe to it. Subscribers can use these services to create cloud-based resources, such as virtual machines and databases, which can then be assembled into running environments used to host workloads and store Inc. AMZN enjoys a dominant position in the cloud-computing market, particularly in the IaaS space, thanks to Amazon Web Services (AWS), which is one of its high-margin-generating businesses. AWS is the world's most comprehensive and broadly adopted on-demand cloud computing platform, offering more than 200 fully featured services from data centers globally. Millions of customers, including the fastest-growing startups, largest enterprises and leading government agencies, are using AWS to lower costs, become more agile and innovate faster. It reportedly offers the widest variety of databases that are purpose-built for different types of applications to enable subscribers to choose the right tool for the job. IBM has surged 60.7% over the past year compared with no change for the industry. Image Source: Zacks Investment Research From a valuation standpoint, IBM trades at a forward price-to-sales ratio of 3.74, above the industry. Image Source: Zacks Investment Research The Zacks Consensus Estimate for IBM's earnings for 2025 has been on the rise over the past 30 days. Image Source: Zacks Investment Research IBM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Business Insider
30-05-2025
- Business
- Business Insider
‘Don't Be Afraid to Buy IBM Stock Right Now,' Says Five-Star Analyst
Five-star Bank of America analyst Wamsi Mohan kept a Buy rating on IBM (IBM) and set a price target of $270 after saying that the tech company is a safe investment with expected growth ahead. Indeed, he believes that IBM will grow its revenue and cash flow, which could help fund more mergers and acquisitions in the future. In his note, Mohan focused on transaction processing (TP) software, a key part of IBM's mainframe systems, which has not only stabilized but is now growing again, even in today's cloud-focused tech world. Confident Investing Starts Here: Mohan explained that TP software makes up about one-third of IBM's total software revenue, earning between $5 billion and $7 billion per year, with most of this coming from IBM Z mainframe systems. In addition, growth in this area is being driven by new pricing models, technological improvements, and high demand for reliable systems that are used in critical business operations. Mohan also pointed out that many IBM Z customers are increasing their usage in order to handle more digital transactions, which has boosted IBM's recurring software revenue. Interestingly, while Red Hat has been a major driver of growth for IBM, TP software is also becoming more important. In fact, IBM expects this part of the business to grow by mid-single digits, while the total software segment is expected to grow by about 10%. It is worth noting that IBM has added features like WatsonX AI and switched to more flexible subscription pricing, which has helped more customers sign on and stay longer. As a result, these strategies are helping IBM grow both usage and revenue by making the software a deeper part of customers' businesses, according to Mohan. What Is the Target Price for IBM? Turning to Wall Street, analysts have a Moderate Buy consensus rating on IBM stock based on eight Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average IBM price target of $260.62 per share implies 0.7% upside potential.
Yahoo
29-05-2025
- Business
- Yahoo
IBM's TP Software Stays 'Extremely Relevant' To Growth, Even In The Public Cloud Age: Analyst
On Wednesday, B Of A securities analyst Wamsi Mohan maintained a Buy rating on International Business Machines (NYSE:IBM) with a price forecast of $270. The rating reflects the analyst's view that the company is a defensive investment and anticipates improving revenue growth that should, in turn, generate higher cash flow available for reinvestment in further mergers and acquisitions. In an analyst note that focused on IBM's transaction processing (TP) software, a critical component of its mainframe operations, Mohan noted TP software has not only stabilized but is now demonstrating significant growth staying extremely relevant in the age of public growth is driven by strategic innovation, evolving pricing models, and the enduring demand for its unparalleled reliability in mission-critical operations. The analyst noted that TP software contributes approximately one-third of the company's total Software segment revenue (over 90% comes from IBM Z/mainframe environments) and generated annual revenues ranging from the mid-$5 billion to over $7 billion over the past decade. Several factors contribute to the growth of IBM's TP software, including increased mainframe workloads and innovative pricing models. He asserted in an analyst note that these drivers ensure that IBM remains competitive in the evolving IT landscape. While Red Hat has often been the primary focus for growth (exhibiting mid-teens growth), TP remains critically important to IBM's overall revenue expansion and profitability, Mohan noted. He further said that the company projects this business to achieve mid-single-digit growth, compared to an expected 10% growth for the entire Software segment. Also, WatsonX integration and innovative pricing strategies have driven greater adoption and improved retention for IBM's TP software, enhancing its overall stickiness within enterprise environments, he added. Moreover, the analyst said several IBM Z customers are scaling MIPS to meet rising digital transaction demands, with 70% increasing usage, boosting recurring software revenue. In 2024, IBM noted about 4 points of transaction processing revenue growth came from higher workload consumption fueled by mobile banking, e-commerce, and data-driven activity. Mohan added that IBM's Enterprise License Agreement (ELA) approach for its TP software has been central to boosting its adoption and financial consistency. Overall, the analyst believes that ELAs have strengthened IBM's capacity to retain clients and consistently grow transaction processing revenue by deeply integrating IBM's software into customer operations and strategic planning. Regarding pricing trends, Mohan said that IBM has transitioned its TP software pricing from rigid capacity-based billing to more flexible, subscription-style models. By combining modest price increases with modern options like Tailored Fit Pricing (TFP) and Enterprise License Agreements (ELAs), IBM has reduced cost barriers and encouraged greater usage. Mohan added that this shift has supported both higher unit pricing and volume growth. Investors can gain exposure to the stock via First Trust NASDAQ Technology Dividend Index Fund (NASDAQ:TDIV) and FT Vest Technology Dividend Target Income ETF (BATS:TDVI). Price Action: IBM shares are trading lower by 0.86% to $258.01 at last check Thursday. Read Next:Photo via Shutterstock Date Firm Action From To Jan 2022 BMO Capital Maintains Market Perform Jan 2022 UBS Downgrades Neutral Sell Jan 2022 Goldman Sachs Initiates Coverage On Neutral View More Analyst Ratings for IBM View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? IBM (IBM): Free Stock Analysis Report This article IBM's TP Software Stays 'Extremely Relevant' To Growth, Even In The Public Cloud Age: Analyst originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
13-05-2025
- Business
- Business Wire
ColeSoft Signs Reseller Agreement with UK-Based Mainframe IT Leader Vertali
NEW YORK--(BUSINESS WIRE)-- ColeSoft, an Izzi Software company, today announced that it has inked a global reseller deal with Vertali for its z/XDC product, the leading debugging tool purpose-built for mainframe systems. This is the first-ever reseller agreement signed by ColeSoft, which was acquired by Izzi Software in 2024. z/XDC will be bundled with technologies from leading mainframe technology companies to help Vertali's customers solve their biggest business and technical challenges. Andrew Penlington, Channel Partner Manager at Vertali, says that, 'It is impossible to overstate the importance of debugging as early in the development process as possible, and ColeSoft has a 30+ year track record of helping organizations get their products to market faster while reducing errors that can cost organizations time and money. We have never had a product like this in our arsenal, and Vertali couldn't be happier to work with Dave Cole and his amazing team to add this critical capability to our stack.' Calin Cole, President of ColeSoft, says, 'Debugging is often seen as a way to fix problems that pop up in the development process, but it's much more fundamental than that - it's about preventing structural problems that can delay or destroy the ability to build and release products on time and on budget. Vertali has built a world-class suite of services and products for the mainframe world, and we are honored to have been selected as their debugging tool of choice to help major organizations that depend on IBM Z optimize their operations.' About Izzi Software Izzi Software was founded by experienced M&A experts and is led by a team with deep expertise in the IBM i and IBM z environments. The company is owned by Big Band, which has an impressive track record in buying and running B2B SaaS businesses that are growing and profitable, with ARR in the range of $2M to $10M. Izzi acquired ColeSoft, which was founded in 1982, in 2024. About Vertali Headquartered in the UK, Vertali provides mainframe services, skills, resources, and software to organizations globally. Working for clients in sectors such as financial services, retail, utilities and government, its consulting approach blends unparalleled expertise with many years' hands-on experience. It offers a pool of skills that are not available anywhere else, including mainframe consultants, security experts, and other senior practitioners. Vertali's stated mission is to help clients to reduce risk, work smarter, and deliver on their mainframe strategy.
Business Insider
08-05-2025
- Business
- Business Insider
IBM Expands Its Hybrid Cloud and AI Capabilities with CockroachDB Integration
Earlier today, Cockroach Labs announced that its main product, CockroachDB, will now support tech company IBM's (IBM) LinuxONE and IBM Z systems, which use the s390x processor. This will bring CockroachDB's ability to scale and handle data across multiple systems to some of the most secure and reliable platforms used by big industries. IBM customers can now use CockroachDB alongside their existing systems for hybrid cloud and AI projects. This is especially helpful for highly regulated industries like banking and healthcare, where security and compliance are very important. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Interestingly, CockroachDB is built to manage critical tasks without interruptions. Indeed, its system copies data across many servers, so even if some servers go down, the system keeps running. Running CockroachDB on IBM's architecture improves this even more by adding IBM's strong security and performance features. This makes it a good fit for important jobs like processing payments or managing user accounts. Developers can also use CockroachDB's PostgreSQL-compatible interface and easily scale across IBM systems as demand grows. On top of reliability and scalability, CockroachDB also offers flexibility and strong security by working across both on-site servers and cloud environments. This lets businesses store data where it makes the most sense without extra work. In addition, running on IBM's platforms adds powerful encryption and secure key management capabilities, which further protect sensitive data. Cockroach Labs said this partnership with IBM fits into its plan to help companies modernize their operations while keeping important data safe and always available. What Is the Target Price for IBM? Turning to Wall Street, analysts have a Moderate Buy consensus rating on IBM stock based on eight Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average IBM price target of $258.79 per share implies 2.7% upside potential.
