Part of the sales miss stemmed from IBM’s technology services and cloud platforms segment, where revenue declined for the first time in three quarters. That group helps clients move applications onto cloud servers and manage workloads through multi-year deals of $500 million to $1 billion.
IBM’s revenue fell short of analysts’ projections, marking a 20th consecutive quarterly decline as growth in new businesses like cloud services and artificial intelligence failed to make up for slumping legacy hardware and software sales.
That sales miss, the first in more than a year, could temper estimates for a return to revenue growth by early 2018. For years, Chief Executive Officer Ginni Rometty has been investing in higher-growth areas and moving away from older products like computers and operating system software. Even as she has shed units to cut costs and made acquisitions to bolster technology and sales, the legacy products are still a drag.
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