The once-prominent business software services and computing tech icon, IBM has been having a rough time as its clients slowly switch from using self-managed, onsite servers with installed software to taking up offsite, cloud-based computing and software services.
This slow shift in the business IT market has disturbed IBM’s product lineups and has forced the company to adapt with the times by meeting the new demands for web-based business computing services.
A Long Road to Growth
According to a Cantor Fitzgerald analyst by the name of Joe Foresi, IBM has a long road back to growth.
IBM reported earnings of $2.35 per share on its revenue of $18.68 billion for the first quarter in 2016 going against analysts’ predictions of about $2.09 per share on $18.29 billion in revenue.
In the first quarter of 2015, IBM reported revenue of $19.59 billion in the first quarter.
Analysts have predicted IBM’s second quarter earnings to be around $2.89 per share on revenue of $20.03 billion.
On the company’s third quarter, it has reported earnings of $3.29 per share on revenue of $19.23 billion.
IBM as a Company
IBM is the perfect example of a well-respected company. Ask any average person on the street what IBM does and they’ll most likely answer to you with something like “they work on computers…I guess”. But IBM is a company that has more than a hundred-year long history of outstanding innovation that virtually no company can match.
Many inventions from IBM over the years of its existence have gone from being proprietary inventions to staples of everyday living.
IBM seems to be content on creating the frameworks in which more ostentatious and short-lived companies can employ, in times when well-respected financial news outlets can’t get over the social media network, that mobile messaging application or other photo-sharing service.