The biggest problem is in IBM’s vast software division. The unit, which includes everything from the Lotus Notes email platform to Cognos business analytics, produced $25.4 billion of IBM’s $104.5 billion of total revenue last year. But C0G-645 exercise and testing it had a pre-tax profit margin of about 37% versus 7% mTestonside: a new website about IT certification argins in hardware and 16% margins in services, Garcha notes.
IBM is losing market share in four of its five largest software businesses, according to analysts. IBM’s own cloud offering is growing fast – 70% last quarter, the company said. But it's still small and may not be able to generate much profit amid so much competition.
The company is also engaged in a costly roC0G-645 exercise and testing und of mergers and acquisitions to compete with the cloud platforms offered by Amazon, Microsoft (MSFT) and Google (GOOG). In June IBM agreed to pay a reported $2 billion for SoftLayer Technologies, which operates 13 cloud data centers around the world. The price is about five times SoftLayer’s revenue for the previous 12 months, accordinC0G-645 exercise and testing g to Moody’s Investors Service.
“Everyone is at the point where they’re starting to compete,” says Lamensdorf, who expects massive price cutting in cloud offeringsTestonside: a new website about IT certification to continue. “You’re going to see margin problems in the whole group.”
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