What Recession?

For the first time in its history, IBM has announced revenue exceeding $100bn, with record pre-tax profits of $16.7bn.

Either figure represents a lot of money – to give you some idea here’s some stats: on average, last year IBM received over $3,200 in revenue per second; that’s over £23,000 per hour in profit (note that really is pounds).

Software group (the bit I work in) earned over $22bn last year in revenue at a gross profit margin of 85%. That means for every pound IBM receives, they can keep 85p of it as profit. Compare that with the personnel-intensive Global Business Services area who can only manage a margin of less than 27%.