IBM's
quarterly earnings have dropped and it suffered narrower profits across all its
business units. It looks as though IBM may have to consider shedding some of
the dead weight of some of its more unprofitable segments. The cloud computing
and AI operations units suffered slimmer profits as well, which is interesting
because you would see those divisions as a real money makers. The only division
that reported improvement was cognitive solutions. This is interesting;
the data analytics segment is the main performer in such a large force like IBM.
IBM states
cognitive computing is “understand the meaning hidden within that data.
Cognitive computing is able to unlock the potential in all data - internal,
external, structured, unstructured, voice, and visual - and make it work
together. Enterprises can make better operational decisions, understand
customer wants and needs, communicate in real time, and optimize business
processes – infused with the cognitive ability to understand, reason, and learn”.
IBMs legacy business of selling hardware and software is shrinking as
customers embrace big-data analytics. It
seems like these are the signs of things to come, IBM needs to be able to
communicate it strengths in big data and shift its organizational resources effectively toward cognitive
computing if it wants to remain competitive.
Surprised an analytics company can struggle like that - read the data!
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