Cloud has not been a profitable offering up until recently, it’s apart of the bigger digitalization of business that is truly driving demand for cloud and not vice versus - started to get hot probably 12 to 16-months ago. So you were in VC investing at the bottom but you want companies to wait until they’re “at the top” to invest? Which is it, bottom or top?
It’s cheaper for big blues to buy the technology and create an offering rather than create it yourself from the ground up. There are thousands of potential game changing technology innovations in the works but most of them fail to execute or the product just isn’t a right fit in the industry - why would IBM waste their in-demand people on research when they could charge a client $270 an hour for MC work and simply buy the offering when it stablizes?
I expect a company would position for the future before their current business becomes the past. I don’t follow these guys, but it seems like they didn’t do that.
it seems IBM’s only chance is that Watson can make 180K of those management consultants redundant and IBM reduces employee costs by ~$20B per year. haha. hello 90% margins.