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IBM's future is hard to read as it moves into cloud territory

IBM's future is hard to read as it moves into cloud territory
The Siliconreview
16 October, 2019

IBM’s transition into the field of software and cloud computing territory continues to make it difficult to forecast the computer giant's performance. IBM is all set to release its third-quarter earnings on Wednesday. Earnings per share are expected to drop to $2.67. Last year’s third-quarter EPS came in at $3.42.

IBM had reported better-than-expected second-quarter EPS of $3.17, excluding certain items, and $19.16 billion in revenues.“This transition is causing a shifting of revenues that makes it nearly impossible to forecast performance due to conflicting trends,” stated analysts from different financial sectors.While the buzz might be centered on cloud computing and cognitive services, IBM has always been known for its mainframes, on which the company was built.

IBM’s Poughkeepsie facility is the home of IBM Z mainframe, including its news model, the z15, which has encryption, cloud-native development, and instant recovery capabilities. IBM also has plans to bring Red Hat OpenShift to IBM Z. Red Hat OpenShift platform helps with development and management of applications.

IBM's System Segment has seen some growth this year, it's been offset by IBM Z product cycle dynamics. IBM also recently opened up a Quantum Computation Center at its Poughkeepsie facility, but it will be awhile before the company sees any results in this area.