IBM, the (non) Computer Company

It struck me hard when I was listening to IBM’s quarterly earnings conference call yesterday: Computer hardware has become a tiny piece of this giant company. Big Blue reported $5.4 billion in computer, storage, and microelectronics sales in the 4th quarter, about 20% of overall sales. Sales of Wintel servers declined by a shocking 32 percent. Even more jolting: Hardware contributed just 9% of the company’s profits.

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