Baek Byung-yeul is a journalist at The Korea Times focused on cultural content, including films and cultural events in South Korea. You can contact him at baekby@koreatimes.co.kr to share your insights.
IBM Korea vows to focus on hybrid cloud, AI
Won Sung-shik, country general manager of IBM Korea, speaks during a press conference at its headquarters on Yeouido, Seoul, Tuesday. Courtesy of IBM Korea
By Baek Byung-yeul
By Baek Byung-yeul
IBM successfully transformed its business structure from that of a hardware business in 2022 to software solution businesses such as hybrid cloud computing and artificial intelligence (AI). This trend will continue to intensify, according to the head of its Korean unit, Tuesday.
“In 2022, software service and solution businesses grew to account for 70 percent of our revenue. We plan to continue our growth this year based on a transformed business portfolio,” Won Sung-shik, country general manager of IBM Korea said during a press conference in Seoul.
IBM posted sales of $60.5 billion in 2022, up 6% from a year earlier. In particular, the sales of its hybrid cloud business increased by 11 percent to $22.4 billion, indicating that the company's business structure is now centered on software-related businesses.
“Customers will be unfamiliar with the change in IBM's portfolio. About 70 percent of the revenue was generated from software solution services because we tried to make a sharp transition and the Korean market changed to a similar level last year as well,” won said.
In particular, the Korean market saw growth in infrastructure sectors such as data management and automation software for hybrid cloud computing and AI as well as consulting and cybersecurity. A hybrid cloud refers to a system that combines a private cloud with public cloud services, enabling customers to make cost-effective decisions.
“Our growth strategy is to become a leader in hybrid cloud computing and AI. As more companies are making their transition to the cloud computing system and we estimate 30 percent to 40 percent of them are operating their system on hybrid cloud and multi-cloud systems. These changes create needs for a number of essential technologies and we have shifted the direction of our business to help customers transition to digital with our services and technology,” he said.
Sharing examples of how IBM Korea helped Korean companies achieve digital transformation, Won cited private companies such as Hyundai Marine & Fire Insurance and Samsung Electro-Mechanics and state-run companies like KEPCO and Korea Meteorological Administration.