This Key IBM Business Is Being Boosted by AI
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International Business Machines' (NYSE: IBM) largest segment is software, but the consulting business is a hidden gem that enables the company to build integrated solutions for its clients. Unfortunately, clients have been slow to commit to discretionary technology projects in an uncertain economic environment, creating a consulting headwind. While software revenue soared 9% in IBM's third quarter thanks to strong demand for hybrid cloud and automation, the consulting segment reported middling 2% growth.Consulting growth looks likely to accelerate in the near future as IBM leans into artificial intelligence. While consulting revenue isn't as lucrative as software revenue, consulting contracts help drive incremental software and infrastructure sales, and can accelerate IBM's overall growth.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool
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