Profit and Revenue Slip at IBM as Hardware Sales Fall and Layoff Costs Rise - NYTimes.com

IBM: is being morphed

"Under Ms. Rometty, who became chief executive two years ago, IBM has made large investments in big data analytics and cloud computing. In the last three months, said Frank Gens, chief analyst at IDC, the investment program has “gone into hyperdrive,” including billion-dollar commitments to make Watson a mainstream business, build out a network of cloud-style data centers and push its traditional software onto the cloud to attract outside software developers.

So IBM, analysts say, is making the right strategic moves. Still, Steven Milunovich, an analyst at UBS Securities, said, “The question is, can the new stuff really grow fast enough to move the needle, to make up for the challenges in IBM’s legacy businesses?”"

Profit and Revenue Slip at IBM as Hardware Sales Fall and Layoff Costs Rise - NYTimes.com