I read “IBM Says Cloud, Mobile, and Data Businesses Will Reach $40 Billion by 2018.” The write up reports that IBM has some “strategic imperative.” I assumed that sustainable revenue growth and healthy profits were important. Well, maybe.
Computing and IT services giant IBM will spend $4 billion on its cloud services, data analytics and mobile businesses in a bid to turn it into what CEO Ginni Rometty said will be a $40-billion-a-year-in-revenue business by 2018. On a conference call ahead of its annual investors presentation in New York, Rometty said the three businesses, which she referred to as IBM’s “strategic imperatives,” have grown in overall importance as it has divested itself of its older traditional business units. Five years ago the divisions amounted to 13 percent of IBM’s sales, Rometty said. By the start of 2015 they accounted for 27 percent.
Not long ago, Watson was going to be a $10 billion business. IBM should be proud of these projections.