How Ibm Became A Growth Company Again

It's raking in new business, its stock is roaring, and it's regaining the respect of Corporate America. What's Gerstner's secret?

It's getting harder to remember the days when IBM was regarded as a national disaster. In the latest quarter alone, IBM snagged a staggering $11 billion in the lucrative computer-services business--winning four out of five deals it went after. A new mainframe model, introduced in September, is sold out for months. Sales of personal computers have risen 25%, and the company can't keep up with demand for its new home PC. Most important, IBM's core business--selling computers and all manner of information technology to major corporations--is healthier than it has been in years: These customers will spend $58.3 billion with IBM in 1996, a respectable 8% jump from $54 billion in 1995.

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