International Business Machines Corporation (NYSE:IBM) Q3 2023 Earnings Call Transcript

They want to work with consulting to use watsonx in this case, but to help them create solutions that let their clients get greater insight, aka helps D&B monetize their data better. So, in that case, it is absolutely consulting led. I think without consulting, we would not have landed that deal. Let me go to others, because there are also examples where our Consulting team is using both what’s available with Azure OpenAI, as an example, to go win deals because they have built up their expertise. They’ve also built up expertise on Amazon’s Braket platform, and they’re going forward with winning deals on those. In that case, they’re coming in with the methodology, with knowledge, with the thousands of trained consultants who know how to work on those platforms, and they are working with the clients to go do that.

I think these are all examples of what is working. I think you are trying to also ask is it going to be Consulting or is it going to be Software? Look, we didn’t say much on the call on this topic. We just characterized it as low hundreds of millions of dollars of booking. But in the absence of anything else, think of that as maybe half and half between Consulting and Software, which does tell you that a couple of points of growth for both those units came from the generative AI that we’ve been putting out. And I think that’s the best way to think about it in terms of what’s happening right now. And we are certainly expecting and planning that that will only increase as the quarters go on. All right. So, let me now wrap up the call. This third quarter performance reinforced our confidence in the strategy and in our ability to deliver value to enterprise clients in today’s environment.

We’re excited of the opportunities ahead of us, and I look forward to taking through — you through our continued progress and our view of 2024 in January. Thank you all.

Patricia Murphy: Okay, Sheila, let me turn it back to you to close out the call.

Operator: Thank you. Thank you for participating on today’s call. The conference has now ended. You may disconnect at this time.