IBM Q1 numbers indicate uptick in demand environment

Tapping into the opportunities would require significant investment, thus hurting margins

If IBM's April quarter financial numbers are any indication, there is certainly an uptick in business demand in the technology services space, but profitability is going to be a key issue as companies will have steadily invest in building capabilities in newer technologies which can further erode their profit margins.

In its financial first quarter ending March 31, 2018, the Armonk-headquartered technology giant reported better than expected earnings with its revenues in the quarter at $19.07 billion, growing 5 per cent, topping the analysts’ estimates of $18.83 billion. This was a straight second quarter of revenue growth on year-on-year basis