27 February, 2015
IBM To Pump $4B Into Cloud, Mobile And Analytics This Year
IBM will dedicate $4 billion in spending this year to the cloud, analytics and mobile technologies, as it struggles with seismic shifts that are changing the computing landscape it once dominated.
In return, by 2018 IBM expects to reap a combined $40 billion in annual revenue from the areas in which it’s investing, which also include social and security, the company said at an annual meeting on Thursday.
It could use the growth. IBM’s sales declined to about $93 billion last year, from just over $98 billion in 2013, thanks to declines in some of its traditional businesses and the sale of two big hardware divisions to Lenovo and GlobalFoundries.
“Much of the decline in revenue has been engineered by us,” IBM CEO Virginia Rometty reportedly said at the meeting. “We restructured the hardware business and it is now less than 10 percent of the company, and we returned that business to profitability.”