IBM’s Efforts to Shift to Cloud Come With Profit Sacrifice
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IBM is banking on the cloud to drive future growth. For now, that shift is taking a toll, as fourth-quarter results and the 2015 profit forecast show.
Chief Executive Officer Ginni Rometty is focusing on returning International Business Machines Corp. to growth through new initiatives like data analytics, mobile and cloud computing -- where technology is delivered via the Internet, instead of stored onsite. Cloud computing gives clients more flexibility in ordering software and can limit their need for IBM’s servers and mainframes, crimping profits.