IBM Revenues: Watson Cookbook Does Not Ring the Cash Register
October 23, 2015
I read “IBM Revenue Falls More Than Expected, Cuts Profit Forecast.” The news about the 14 consecutive quarter of declining revenue speaks loudly about Big Blue. I have documented the silliness of the billion dollar bet on Lucene, acquired technology, and home brew scripts. I try to document the F____d acronym which means face detection, one of the Watson capabilities. I amuse myself by thinking about the cookbook based on Watson-crafted recipes.
Here’s the passage I noted:
Revenue from what the company calls “strategic imperatives,” which include cloud and mobile computing, data analytics, social and security software, rose about 17 percent in the third quarter ended Sept 30.Yet the new businesses have so far failed to make up for revenue lost to divestitures. The company known as ‘Big Blue’ has been selling low-margin businesses such as cash registers, low-end servers and semiconductors to focus on high-growth areas such as security software and data analytics, besides cloud-based services.
I interpret this to mean that IBM seems to have some broken bits which its managers cannot turn into sustainable, high growth, organic revenue. Watson? Well, the IBM ad and PR agencies know it is a winner. The financials, well, financials are not PR people.
Stephen E Arnold, October 23, 2015
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IBM Revenues: Watson Cookbook Does Not Ring the Cash Register : Stephen E. Arnold @ Beyond Search