IBM posted increased revenues in software, consulting and infrastructure in the third quarter as the tech company prioritized hybrid-cloud and artificial intelligence (AI) strategies.

“Technology remains a fundamental source of competitive advantage” in the industry, IBM CEO Arvind Krishna said during Wednesday’s Q3 earnings call, noting that 77% of businesses surveyed have adopted the hybrid cloud for their organizations, according to a recent survey by The Harris Poll.

IBM’s software segments — which includes the hybrid-cloud platform, software company Red Hat, automation, data, AI, security and transaction processing — reported Q3 revenue of $5.8 billion, a 14% year-over-year increase, according to the earnings presentation.

Infrastructure revenue in Q3 increased by 23% YoY to $3.4 billion due to hybrid infrastructure, zSystems computers and software and distributed infrastructure and support, according to the presentation.

The company’s consulting revenue climbed 16% to $4.7 billion as clients looked to “accelerate their digital transformation journeys,” Krishna noted.

“These revenue results reflect the execution of a more focused hybrid cloud and AI strategy based on a platform-centric approach and leveraging a broad ecosystem of partners,” he added.

Evaluating acquisitions

Armonk, N.Y.-based IBM’s newest hybrid-cloud computing customers for Q3 include Bank of America, Bharti Airtel and Samsung Electronics, Krishna said.

Barclays, Citi and PNC were among more than 250 clients that implemented IBM’s hybrid-cloud technology in Q2, Krishna said in July during the company’s Q2 earnings call.

Meanwhile, the company is evaluating potential acquisitions and considering how a business would “fit [IBM’s] strategy,” including its ecosystem of growth and talent, Krishna said. IBM’s most recent acquisition of data observability software Databand.ai closed in June.

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