IBM’s Struggle

IBM’s CEO, Ginni Rometty, is facing big problems as they were expected to show $20 in adjusted earnings per share by 2015. She was instructed to attain these results by following her predecessor’s game plan called “Roadmap 2015″ but this roadmap inhibited her ability to gear the company for the current era of cloud computing. They had to absorb a smaller tech company recently just to be able to provide certain services to customers that they wouldn’t have competently been able to do otherwise. The entrance of cheap cloud computing means that big corporations don’t require their big, expensive main frames. Even if they do catch up to companies like Amazon and Google, it’s hard to say if they’ll be able to compete and on top of that, meet the numbers that their investors are expecting.

One of the people mentioned in the article exclaimed that IBM should stop focusing so much on financials and start to innovate more through the cloud. I totally agree because at this point in the game, other companies are way ahead and have mastered their services through the cloud. IBM won’t be able to keep up or increase their market share by just duplicating what other companies have already done. They need to create something within the cloud that is their own and unique.

http://www.businessweek.com/articles/2014-10-20/ibm-is-in-even-worse-shape-than-it-seemed

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