IBM saw profits slump annually in Q2, but its CFO said it is due to the firm making increased investments throughout the year.
For the three months to 30 June, net profit fell 29 per cent year on year to $2.5bn (£1.9bn), on revenue which over the same period fell three per cent to $20.2bn.
Martin Schroeter, CFO at IBM, said the figures "reflect higher levels of investment, especially in Cognitive Solutions, and the fact that we are building scale in our as-a-service businesses."
IBM reported revenue of $6.3bn for EMEA in Q2, a four per cent decrease year on year. Schroeter said the sales slump in the region was due to its performance in Germany and Switzerland.
Of its four business segments, Cognitive Solutions was the only one to see an increase in revenue, up 3.5 per cent year on year to $4.7bn. The increase was led mainly by cloud-as-a-service, which saw a 54 per cent rise in revenue to $500m.
Global Business Services revenue decreased three per cent to $4.3bn. But it saw a 60 per cent increase in cloud business within the segment, which reached $700m.
Technology Services and Cloud Platforms remained steady at $8.9bn with no change year on year, but cloud revenue in the segment increased 43 per cent to $1.4bn.
Revenue in its Systems unit decreased 23 per cent to $2bn, and was the only unit to see a decrease in cloud revenue, down 11 per cent to $800m.
"The strongest growth came from Cognitive Solutions, led by our analytics and cognitive capabilities, and security. In Technology Services and Cloud Platforms, our infrastructure services revenue continues to grow, while integration software declined as we shift those offerings to cloud," said Schroeter.
"Global Business Services continues to reflect a shift in our business. We're continuing to deliver double-digit growth in the strategic areas led by mobile and cloud."
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