IBM A/NZ Holdings is a Proprietary Company that is ranked number 122 out of the top 2000 companies in Australia. The company generates the majority of its income from the Computer System Design Services in Australia industry.
In 2017 the company generated total revenue of $3,087,934,000 including sales and other revenue. In 2017 IBM A/NZ Holdings had 4913 employees in Australia including employees from all subsidiaries under the company’s control.
37.9% 24% 16.8% 13.6% 7.7%
Data Processing and Web Hosting Services in Australia
IBM Australia operates in the industry through its business process services. The business process outsourcing division operates through IBM Cloud, which provides cloud computing and virtualisation services to assist businesses with data processing and web hosting needs. Cloud computing has grown robustly over the past five years. The company has enabled clients to increasingly integrate cloud computing into their operations by making IT resources highly automated and virtualised. In early 2014, IBM acquired cloud-based database software Cloudant and marketing software Silverpop. The parent company also acquired 10 companies in 2013, which indirectly supported the technological base of its Australian subsidiary. These acquisitions included SoftLayer, which specialises in cloud computing. The Federal Government paid IBM $9.6 million to host the 2016 Australian eCensus. However, the company was required to pay a substantial settlement to the Federal Government in compensation for disruptions to the eCensus. In May 2017, IBM opened its fourth data centre in Australia to facilitate the growing demand for its IBM Cloud hosting service and its Watson cognitive platform.
The company’s industry-related revenue is expected to rise at an annualised 9.0% over the five years through December 2018. This result represents an outperformance of the broader industry. The company’s revenue growth has been supported by a strong focus on expanding its data-centre operations, coupled with strong demand for IT outsourcing in the Australian market. The acquisition of SoftLayer has boosted the company’s knowledge base in cloud technologies, and its ongoing investment in data-centre facilities has supported its industry-related operations. The company’s cloud hosting and analytics operations have increasingly contributed to profit margin growth over the past five years. IBM Australia has continued to focus on lucrative cloud computing and IT security related streams, instead of low-margin traditional hardware products.