IBM Posts Revenue Decline for Eighth Consecutive Quarter



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First of all, revenue hasn't declined for eight consecutive quarters contrary to what you and businessweek have published. I guess nobody bothers to fact check anymore. 2013 reported quarterly revenues: Q1 - $23.4B; Q2 - $24.9B; Q3 - $23.7B; Q4 - $27.7B. So there was an increase in Q2 2013, and then decrease in Q3 2013, and increase in Q4. Similar in 2012. So please explain to me how that's 8 consecutive quarters of decline. If you follow IBM at all, you'll notice that Q4 revenues each year are always significantly higher in Q4 due to seasonality and revenue recognition timing in some of their contracts.

Also, the news media and internet are constantly posting about how IBM is doomed due to their failure in hardware and cloud, which in combination make up less than 20% of revenues. The reduction in hardware exposure has been planned since the first roadmap in 2007. Cloud revenue, the other component people always complain about, was up 59% from $2.6B in 2012 to $4.4B in 2013. 85% of the fortune 500 use IBM enterprise cloud, and 24 of the largest 25 fortune 500 companies use their SaaS cloud service. You could also take a look at the other 80% of their business (Software, data analytics) if you actually want a complete picture of the company.



IBM is still clinging to the server/mainframe market and their POWER architecture, which has fallen out of relevance in recent times.

This doesn't surprise me, but part of me doesn't want to see this company that helped change computers forever go under.


John Pombrio

IBM has worked very hard to divorce itself from selling hardware and instead make most of their profit and money from selling services like support and cloud. HP is also going that route which is why it tried to dump the PC and printer divisions at some point or another.