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.