The result beat analyst expectations and signals that IBM is potentially nearing the end of negative growth as the company transitions away from legacy hardware businesses to cloud based businesses and cognitive computing.
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IBM reported third quarter revenues of US$19.15 billion and adjusted EPS of US$3.30, beating analyst estimates of US$18.61 billion and US$3.28 respectively. The latest result signals that IBM is potentially nearing the end of negative growth as the company transitions away from legacy hardware businesses to cloud based businesses and cognitive computing.
IBM provides computer solutions through the use of advanced information technology with core business units including technologies, systems, products, services, software and financing. IBM is trying to bridge its operations from the days of high margin hardware and multi-year services contracts to the lower margin model of selling subscription-based use of software stored in the cloud (Software As a Service or “SaaS” platforms).
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