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What is IBM Software? How Does IBM Software Make Money?

Global technology provider International Business Machines (IBM) offers hardware, software, cloud-based services, and cognitive computing. IBM has been focused on continuous innovation for over a century. So what is IBM software and how do they benefit users? We will clarify the above questions in this article.

What is IBM Software?

IBM Software means IBM System Software and Application Software. The Software used by IBM to provide the Services is owned by IBM or any of its Affiliates. IBM offers a broad range of software, consulting services, and hybrid cloud infrastructure. The Company also provides financial services to its customers to facilitate their acquisition of its information technology (IT) systems, software and services. The company has customers in more than 175 countries and competes with hundreds of companies ranging from small businesses to large multinational corporations.

The history of IBM

IBM was founded in 1911 following the amalgamation of four companies in New York State. By Charles Ranlett Flint, it was first called the Calculation Tabulation Company and was renamed IBM in 1924. In 1964. , IBM introduced what became the de facto standard for large companies’ business computing with System/360. According to the company, orders for the mainframe line exceeded sales expectations, and IBM received more than 1,000 orders within four weeks of the product’s announcement.

The history of IBM
The history of IBM

MVS, launched in 1974, has been at the heart of IBM’s mainframe operating system technology for more than 40 years. The popularity of the System/360 and subsequent mainframe models gave IBM a lasting market advantage, but the company faced several rivals in the mainframe space. IBM also faced the challenge of minicomputers or mid-range systems, which are less expensive than mainframes and are targeted at smaller businesses or divisions within large enterprises. However, IBM was ready for additional technological changes. In the 2010s, IBM began to reshape itself as a cloud computing and cognitive solutions company. The IBM CEO in 2011, highlighted the core set of strategic requirements for IBM: analytics, cloud, mobility, and security.

The benefits of IBM software

IBM software solutions feature the most emerging technologies – such as Artificial Intelligence (AI) and machine learning – applied in innovative ways to address top business concerns.

Data can be trusted

Confident decisions require reliable data. IBM can help you plan your next big move based on actionable intelligent data. Powered by artificial intelligence and machine learning, IBM analytics software helps you monitor, track, and explore data across your enterprise. You will also be able to detect patterns and predict future outcomes using predictive modeling.


IBM has the software you need to tailor the customer experience across multiple channels. The Watson Customer Engagement software suite gives you deep customer insights to help your business gauge user behavior and deliver more relevant content.

Guarantee of security

Every firm should have digital security as its top priority in the age of increasing cybercrime. IBM security software will safeguard your company from current cybercriminals while assisting you in preparing for potential dangers.

To assist your security team in identifying potential flaws, installing the required fixes, and preventing attacks before they start, IBM integrates artificial intelligence (AI), intelligent orchestration, and internal cooperation. And if they do, IBM supports your team’s swift response.

How does IBM software make money?

How does IBM software make money
How does IBM software make money

IBM operates through four businesses: Software, Consulting, Infrastructure, and Finance. It provides a breakdown of revenue and gross margin for each of these segments. Let’s see how IBM makes money from the software segment. IBM’s diverse line of software includes analytics services such as IBM Cognos Analytics, IBM SPSS, IBM Maximo Asset Management, and DB2. Many of IBM’s products in this area are due to acquisitions: The company bought Maximo in 2006, Cognos in 2008, and SPSS in 2009. The company’s line of software in the mobile and social space includes a business email service. IBM Verse and the IBM Notes collaboration product.

Additionally, IBM security software includes MaaS360 for mobile device security and IBM’s QRadar Security Intelligence Platform, a security information and event management product. The IBM Software segment connects the company’s software solutions to its hybrid cloud platform to help customers meet their data needs, and help them automate and secure their systems. This segment includes all of IBM’s software offerings with the exception of software included in the Infrastructure segment. The Software segment generated $24.1 billion in revenue in the fiscal year 2021, up 5.3% year-over-year. It accounts for more than 42% of total revenue across all four segments. Segment gross profit grew 5.9% to $19.0 billion, representing 59% of total profit across all segments.


Today we have explained to you what IBM software is, the benefits they bring to businesses and customers, and how IBM software makes money from its products. Hopefully with the information that we have provided, you will have more useful knowledge. Follow our website to stay up to date with the latest software news.

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