IBM adds its voice to talk of IT recovery

By Alun Williams

Posted on 16 Oct 2003 at 10:36

Following in the wake of Intel's positive results yesterday - which some analysts believe signposted the end of the long-running IT slump - IBM has reported its quarterly results and made positive noises about the economic outlook.

'We are beginning to see signs that the economy has stabilised,' said IBM chairman and CEO, Samuel Palmisano. 'As we look to 2004, more customers are expected to increase their investments in information technology. While demand is not yet across the board, it is strongest in the areas where we have positioned the company and strengthened our capabilities.'

Looking ahead, he also saw signs of encouragement, highlighting the role of Linux. 'Next year, in fact, we see the need for approximately 10,000 new positions in key skill areas, including high-value services, middleware technologies, Linux and open standards-based hardware and software.'

'Although it is too early to say that a rebound is at hand,' said Palmisano. 'We are confident that we will benefit from both a pick up in IT spending and an economic recovery.'

As for the hard figures themselves, IBM reported net income of $1.8bn which, compared with $1.7bn for the same period in 2002, represents an increase of 5 per cent. Revenues for the quarter were $21.5bn compared with $19.8bn a year ago (but this is actually only a four per cent increase when ignoring currency fluctuations).

Breaking those figures down, IBM's revenues from Global Services, including maintenance, increased 17 per cent, while those from Software increased 11 per cent. Of particular products, the company highlighted its WebSphere family of e-business middleware, revenues from which increased 12 per cent.