Starting today, IBM's stock is being reclassified on the FTSE All-World Index as a software and services company rather than as a hardware company.
In an announcement today, IBM said it's being reclassified on the financial exchange because a majority of its revenue now comes from its software and services businesses, rather than from its hardware division, as has been its history.
Since the second quarter of 2001, IBM's Global Services division has brought in more revenue than the hardware division, according to the company.
IBM will remain within the FTSE All-World Information Technology economic group, but the company will now be found in the Software and Computer Services sector and the Computer Services subsector. Previously, IBM was found in the Hardware sector and the Computer Hardware subsector.
IBM said that services and software made up 55 percent of the company's total revenue and nearly 65 percent of gross profit, with the trend accelerating in the first quarter of 2002.
The FTSE Global Classification System is used by stock exchanges worldwide to classify stocks, including the London Stock Exchange, Euronext, Hang Seng, Portugal and Johannesburg. The FTSE All-World Index Series is a family of broad-based global indices that includes 49 countries and about 2,400 stocks.
The FTSE is a trademark of the Financial Times Ltd. and the London Stock Exchange PLC.