iDisrupted on IBM transformation and future focus

iDisrupted author, John Straw claims that, IBM’s not really bothered about its ‘disappointing’ Q1 revenue performance. Straw claims that IBM are preparing to move into recurring revenue from AI SaaS.

In this article, author of iDisrupted John Straw explains why IBM isn’t bothered by its Q1 revenue performance.

For the last 12 quarters, IBM has reported declining revenue. Most recently IBM posted its quarterly revenue of $19.6 billion, which fell just short of its predicted estimate of $19.7 billion.

Many management teams in the same position would be by now demonstrating new, dramatic and highly visible strategies in order to increase their revenues ready for the next quarter. But we have seen nothing from IBM. Or so it would seem.

John Straw, author of iDisrupted claims that behind the scenes at IBM, the organisation have been making very profound moves into AI and big data. IBM have been transforming their business by focusing on hardware as a service through its increasingly successful Watson and its new Z13 mainframe.

John States; “Watson is brilliantly positioned – if you don’t have the hardware investment to drive deep learning and AI applications then simply rent it from IBM with Watson. If you’re planning massive data analytics from the Internet of Things then you’ll need the gargantuan power of the Z13.”

IBM might appear to be disappointed right now, but that doesn’t mean it’s worried about its future. It would be extremely difficult for an organisation as big as IBM to change as fast as the industry. But IBM are changing, and it’s changes are in all the right areas.

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