IBM’s TP Software Stays ‘Extremely Relevant’ To Growth, Even In The Public Cloud Age: Analyst

Wednesday, B from securities The analyst Wamsi Mohan maintains a purchase classification International business machines (NYSE: IBM) with price expectations of $ 270.

The classification reflects the analyst’s view that the company is a defensive investment and expects to improve revenue growth, which, in turn, should generate a higher cash flow available for re -investing in more mergers and acquisitions.

In an analyst note, focus on the TP TV program (IBM), which is a decisive component in its central operations, Mohan noted that the TP program has not only settled, but now shows a significant growth in the era of the public cloud.

Also read: IBM AI Watsonx is integrated with Oracle Cloud to enhance the productivity of the institution

This growth is driven by strategic innovation, advanced pricing models, and permanent demand for its unparalleled reliability in important operations.

The analyst pointed out that the TP program contributes to about a third of the company’s program’s program revenues (more than 90 % comes from IBM Z/Mainfrry environments) and generates annual revenues ranging from $ 5 billion to more than 7 billion dollars during the past decade.

Many factors contribute to the growth of IBM TP program, including increasing central work burden and innovative pricing models. He stressed in a analytical note that these drivers guarantee that IBM is still able to compete in the advanced information technology scene.

Mohan noted that Red HAT was often an essential axis of growth (which shows growth in the middle of adolescence), but TP is still very important for the expansion and profitability of revenues in IBM.

He also said that the company exposed this work to achieve two numbers in the middle of the number, compared to a 10 % expected growth for the entire program sector.

He added that the integration of Watsonx and innovative pricing strategies led to an increase in adoption and improving the retention of the IBM TP program, which enhances its total expulsion within institutions environments.

Moreover, the analyst said that many IBM Z customers expand the MIPS range to meet the increasing digital transactions requirements, with 70 % increase, which enhances repeated program revenues.

In 2024, IBM noticed about 4 points of transaction processing revenues growth of the higher work burden consuming the mobile services via mobile phone, e -commerce and data -based activity.

Mohan added that the approach of the ESP (ELA) license agreement (ELA) for its TP program was essential in promoting its financial adoption and consistency.

In general, the analyst believes that Elas has strengthened IBM’s ability to keep customers and develop transactions processing constantly by integrating IBM programs deeply into customer operations and strategic planning.