Tuesday, November 13, 2007

Why Big Blue May Still Lag - WSJ.com

Interesting reality check 

Yet while this shift in software away from best-of-breed may present merger-and-acquisition opportunities for IBM, it isn't good news for the company's services business, which accounts for more than half of sales. As companies move toward one-stop shopping, there tends to be less need for consultants to integrate software and new systems. Sure, revenue at IBM's services businesses rose a healthy 14% in the latest quarter. Expected revenue from new contracts and its backlog have lagged behind revenue growth for several quarters, so growth is likely to slow.

Why Big Blue May Still Lag - WSJ.com

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