IBM Named Top-Tier Software Vendor by APPS RUN THE WORLD in the APPS TOP 500 Market Report

IBM Strengths, Domain Expertise, and Key Differentiators

In the 2024 fiscal year, IBM reported 3% revenue growth and generated $12.7 billion in free cash flow, its highest in years, driven by a 9% increase in software segment performance and substantial gains in its generative AI business, which contributed over $5 billion in revenue across software and consulting. Strategic acquisitions, including Neural Magic and the pending $7 billion purchase of HashiCorp, further enhanced IBM's AI and cloud capabilities. The introduction of the AI-optimized z17 mainframe represented a major innovation, enabling 50% more daily AI inferencing and supporting over 250 use cases across industries.

IBM’s commitment to hybrid cloud and AI as its growth strategy was underscored by the Red Hat OpenShift platform, Cloud Paks, and industry-leading security features tailored for regulated sectors. With a services team skilled in cloud migration and application integration, IBM continues to support clients through the digital transformation accelerated by remote work and pandemic-driven shifts.

Its competitive edge is further strengthened by robust research and development efforts, with 7–8% of annual revenue invested in high-value areas such as AI, quantum computing, blockchain, security, and next-generation computing architectures. IBM Research collaborates globally to drive innovation and apply advanced technologies across critical sectors, including healthcare, IoT, education, and financial services, helping clients solve complex challenges and maintain a competitive edge.

IBM Recent Developments

At IBM Think 2025, the company spotlighted major advancements in agentic AI, particularly through its watsonx Orchestrate platform. IBM introduced an Agent Catalog featuring over 150 pre-built AI agents developed by IBM and its partners to streamline enterprise adoption. A notable upgrade was the ability to build custom AI agents using a no-code, drag-and-drop interface—enabling users to create functional agents in under five minutes. Additionally, enhancements in agent observability were introduced, offering greater governance, monitoring, and performance oversight, underscoring IBM’s push for scalable, manageable AI systems.

IBM also unveiled key developments in hybrid cloud and data integration. Expanded collaborations with Oracle and AWS aim to bring watsonx and agentic AI capabilities to OCI and AWS ecosystems, respectively. A new partnership with Lumen leverages their edge infrastructure to deliver AI capabilities closer to data sources. Meanwhile, watsonx.data is being enhanced to support unstructured data for generative AI applications, offering improved accuracy within a unified data lakehouse. IBM also revealed zero-copy integration between IBM Z and Salesforce, enabling seamless AI-powered use cases on Salesforce’s Agentforce platform without data duplication.

On the infrastructure and AI modeling front, IBM released a preview of Granite 4.0 Tiny, a compact hybrid model combining Mamba-2 and Transformer architectures for efficient performance. The new LinuxONE 5 system, built for AI-intensive workloads, introduces robust security and high-throughput AI inference. Db2 and Db2 Warehouse SaaS are now available on Azure under a BYOC (Bring Your Own Cloud) model, with version 12.1.2 introducing AI-optimized features. Similarly, Netezza SaaS BYOC launched on AWS, with support for Azure and GCP on the way. These technical advancements were framed within a broader message: IBM emphasized the need for a cohesive hybrid strategy to realize AI's full ROI, while also sharing progress in quantum computing, including strides toward quantum utility and quantum-centric supercomputing, cementing IBM’s role at the forefront of enterprise AI and cloud innovation.

IBM Mergers and Acquisitions (M&A) Activities

In 2025, IBM strategically expanded its hybrid cloud, AI, and enterprise consulting capabilities through several key acquisitions.

In February, IBM completed its $6.4 billion acquisition of HashiCorp, a leader in infrastructure-as-code and multi-cloud management tools, including Terraform. This acquisition enhances IBM’s hybrid cloud and security automation offerings, integrating HashiCorp’s solutions into IBM’s Software segment. Also in February, IBM announced its intent to acquire DataStax, a company known for its cloud-native database solutions built on Apache Cassandra. This move aims to enhance IBM’s Watsonx AI platform, facilitating the management of unstructured and semi-structured data for generative AI applications.

In April, IBM acquired Hakkoda, a data consultancy specializing in Snowflake-based solutions. This acquisition bolsters IBM Consulting’s data transformation services, aiding clients in preparing their data for AI-powered operations. Earlier in January, IBM announced its intent to acquire Applications Software Technology (AST), a global Oracle consultancy with a strong presence in the public sector. This acquisition is set to strengthen IBM’s Oracle Cloud Application services, particularly in local government and education sectors.

Finally, in late 2024, IBM completed the acquisition of Accelalpha, a global provider of Oracle Cloud services. This acquisition expands IBM’s consulting capabilities in supply chain, logistics, and financial services, enhancing its Oracle Cloud application offerings. Collectively, these acquisitions reflect IBM’s strategic focus on strengthening its hybrid cloud and AI capabilities, positioning the company to better serve enterprise clients across various industries.

IBM Customers in ARTW Customer Database

Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying IBM applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of IBM and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified IBM SPSS, IBM Maximo Asset Performance Management, IBM Procurement, Kenexa, Cognos, IBM Watson, IBM Planning Analytics, IBM Clinical Development, IBM TRIRIGA Building Insights customers.

IBM Key Enterprise and Cloud Applications

IBM SPSS, IBM Maximo Asset Performance Management, IBM Procurement, Kenexa, Cognos, IBM Watson, IBM Planning Analytics, IBM Clinical Development, IBM TRIRIGA Building Insights

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IBM Direct vs Indirect sales

IBM Customers - Breakdown by Geo, Size, Vertical and Product

List of Verified IBM Customers

No. of IBM Customers: 100000

No. of IBM Enterprise Applications Customers: 100000

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As of 2024, IBM serves over 100,000 businesses globally, spanning industries such as finance, healthcare, retail, manufacturing, and education. Notably, 47 of the top 50 Fortune 500 companies rely on IBM Cloud to run their operations. IBM's mainframe systems, particularly the IBM Z series, are integral to many large enterprises; for instance, 71% of Fortune 500 companies utilize IBM Z systems.

IBM's global presence extends to 175 countries, with a workforce of approximately 270300 employees as of 2024.

IBM has 40,000 Watson customers across 20 industries worldwide, more than double the number four years ago. Watson products and services are being used 140 million times a month, compared with a monthly rate of about 10 million two years ago.

Among IBM biggest customers are: Microsoft, HP, Cisco, Dell, Oracle, Intel, Google, VMWare, Toshiba and Nortel.

IBM Market Opportunities, M&A and Geo Expansions

IBM Research stands out as a strategic asset in the company’s innovation engine, offering a unique blend of academic rigor and practical application. By fostering collaborations with initiatives like the AI Alliance and the Watson-MIT AI Lab, IBM leverages world-class research talent and open innovation to rapidly translate emerging technologies into enterprise-ready solutions. This model positions IBM to stay ahead of the curve in AI and hybrid cloud advancements, while maintaining alignment with both academic and industry-driven standards.

Another differentiator is IBM’s integrated consulting capability—a rare attribute among leading tech vendors. Through IBM Consulting, the company can bridge the gap between product development and business execution, ensuring its technologies are not only adopted but also aligned with client-specific outcomes. This vertical integration creates a clearer, faster path to business value, enabling IBM to drive real-world impact from its innovations and better support enterprise digital transformation initiatives.

In October 2023 IBM's latest strategic move involved the acquisition of Manta Software, a renowned data lineage platform, signaling a significant step forward in bolstering its capabilities within the realm of AI, data, and governance. In a world where data complexity is on the rise, understanding the lineage and provenance of data has emerged as a critical concern for enterprises.

Through this acquisition, IBM aims to integrate Manta's data lineage capabilities into its watsonx suite of offerings, enhancing transparency and trust within AI and data governance processes. With Manta's solutions, businesses leveraging IBM's platform can ascertain the origin and evolution of their data, identify potential discrepancies in data flows, and mitigate risks associated with sensitive data exposure and regulatory compliance.

This acquisition marks IBM's eighth acquisition of 2023, reflecting the company's ongoing commitment to bolstering its hybrid cloud and AI capabilities under the leadership of CEO Arvind Krishna. As IBM continues to expand its portfolio through strategic acquisitions, the integration of Manta's data lineage platform underscores the company's dedication to helping businesses navigate the complexities of the modern data landscape while driving innovation and trust in AI-powered solutions.

IBM Risks and Challenges

As technology continues to evolve at a rapid pace, businesses must remain agile and adaptive to meet changing customer needs and market dynamics. One significant risk for IBM lies in its ability to anticipate and respond to shifts in customer preferences, competitive actions, disruptive technologies, and emerging business models and ecosystems.

Failure to do so could result in declining demand for IBM's products and services or increased costs associated with adapting to these changes. IBM's success hinges on its ability to innovate and deliver value-added solutions that address evolving customer requirements and market trends.

In the normal course of business, the company’s financial position is routinely exposed to a range of risks. These include market risks associated with fluctuations in interest rates and foreign currency exchange rates, particularly in relation to outstanding debt and non-U.S. dollar-denominated assets and liabilities. It also faces credit-related risks, such as the collectability of accounts receivable. It regularly assesses these exposures and has established comprehensive risk management policies and business practices to help mitigate potential adverse impacts and support financial stability.

IBM Ecosystem, Partners, Resellers and SI

The Ecosystem Partner Day leading up to IBM Think spotlighted IBM’s growing network of alliances focused on the development, hosting, and orchestration of AI agents. These partnerships reinforce IBM’s agentic AI strategy and demonstrate its commitment to building a robust ecosystem—something particularly relevant at a time when interest in AI agents is accelerating across industries.

At the main event, IBM unveiled a series of key innovations in agentic AI. These include a no-code build-your-own-agent framework, a library of pre-built domain agents, and integrations with enterprise platforms such as Adobe, AWS, Microsoft, and ServiceNow. Enhancements to orchestration and observability further support enterprise-grade deployment and governance. A significant highlight was the launch of the Agent Catalog in watsonx Orchestrate, which provides streamlined access to over 150 agents and tools developed by IBM and its partners.

In May 2024, IBM partnered with Palo Alto Networks to enhance cybersecurity services using AI. Under this agreement, Palo Alto Networks will integrate IBM's Watsonx language models into its AI services, and IBM will train over 1,000 security consultants in Palo Alto's technology. The collaboration also includes the establishment of a joint security operations center to address complex cybersecurity threats more effectively.

In November 2024, Ferrari announced a multi-year partnership with IBM, effective from January 2025. IBM will become a Premium Partner of Scuderia Ferrari and the Scuderia Ferrari Driver Academy, supporting Ferrari's technological advancements in motorsports.

In October 2024, IBM Japan and Internet Initiative Japan Inc. formed a strategic partnership to provide a "Distributed System Joint Platform" for regional financial institutions. This platform offers flexible and scalable services to meet the individual needs of financial institutions, enabling efficient use of distributed systems through a private network backbone.

Research Methodology

Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.

Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).

For additional information on our methodologies, here's the link: