IBM posted a third consecutive quarter of declining revenue, raising concerns about its turnaround and its ability to compete in the crowded cloud market.Growth was flat or declined in all of IBM's main reported lines of business. Net income fell 5.2%. Analysts were largely disappointed the company's lack of growth, but encouraged by signs that the company is investing in faster- growth parts of its business.
IBM has struggled in the modern cloud computing era. They see promise in a hybrid cloud model which is the idea that companies will increasingly use a combination of cloud services and their own equipment to accomplish those tasks. They aim to expand that business.
Since 2012, IBM has poured resources into cloud computing and new technologies in order to move away from traditional growth engines such as equipment sales and IT services which haven't been growing as rapidly. IBM has attempted to bolster they hybrid-cloud system with its addition of Red Hat.
The lack of growth at IBM demonstrates the need to understand ones market and to take constant valuations of your market and competitors. Because IBM was slow to move into the cloud computing market, they came in at a disadvantage as market giants like google and apple had already been established. If IBM had continually examined the tech landscape and saw the growth of cloud computing they would have higher growth in today's market.,
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