IBM plans to save $4.5bn internally by expanding AI initiatives, achieving a $3.5bn annual run-rate savings by 2024. Revenue increased to $17bn, with a 10% growth in annual recurring revenue from the software sector to $22.7bn, driven by OpenShift's over 20% revenue rise. The automation business grew 14% after acquiring HashiCorp, showing early synergy between HashiCorp's Terraform and Ansible. AI has shifted IBM's focus, driving transformation and generating over $7.5bn in their AI business, leading to an expected free cash flow surpassing $13.5bn.
AI remains a powerful driver of transformation for our clients and for IBM. Our generative AI book of business continues to accelerate and now stands at more than $7.5bn.
We are raising our full-year outlook for free cash flow, which we expect to exceed $13.5bn, as a result of strong first-half performance.
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