International Business Machines' (NYSE: IBM) strategy centers around hybrid cloud computing and artificial intelligence (AI). In the cloud computing market, IBM's acquisition of Red Hat forms the foundation of its hybrid cloud platform. For large companies and organizations looking to modernize their infrastructures and applications, aiming to save money, remove the burden of legacy tech, or deploy new technologies like AI, IBM's hybrid cloud platform offers a path forward.

IBM's strategy in AI is similar. The company launched its watsonx AI platform last year, providing enterprise clients with a platform for developing, training, deploying, and managing AI models and agents. Since that launch, IBM has booked about $3 billion worth of business related to AI and is now adding more than $1 billion of new business each quarter.

While these software platforms are at the center of IBM's overall strategy, it's the consulting business that's ultimately doing a lot of work. Large organizations need not only software but also guidance, solutions, implementation, and other services as they go through complex and prolonged modernization efforts. A company with on-premises servers running outdated applications needs a lot of help transitioning to a hybrid cloud architecture and deploying new AI workloads.

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Source Fool.com