Can IBM pivot fast enough?

This week, TBR publishes its initial thoughts on IBM’s 4Q19 performance, featuring insights from our data center and professional services analysts.

“Another quarter, another IBM Initial Response from TBR. And while our initial report on IBM’s earnings release remains constant, IBM’s strategy and investment focuses continue to pivot,” says Analyst Stephanie Long. “This quarter we’re looking at recent developments in IBM’s quantum computing business, including how high-performance computing ties into the market, as well as what’s new in IBM’s Systems Hardware portfolio and strategy.”

Senior Analyst Elitsa Bakalova adds, “IBM is winning transformational deals that include consulting, implementation and management of next-generation solutions such as cloud, AI, blockchain and IoT. IBM is advancing in quantum computing research and expanding outside the U.S., in Germany and Japan, to broaden the practical application of quantum computing and speed up the development of the digital economy. Enabling hybrid cloud adoption remains at the forefront of IBM’s strategy, and the extended partnerships with VMware and HCL Technologies solidify IBM’s ability to transform clients’ infrastructure and application environments.”

Additional assessments from our analyst teams

Tata Consultancy Services (TCS) closed 2019 with continued revenue growth, which TBR attributes to ongoing investments in its solution suite and talent pool, alongside aggressive pricing. Strengthening its digital capabilities that enable technology-based transformation, at scale, for the company’s global clientele will drive further growth in 2020. Additionally, preserving a low turnover rate compared to India-centric peers will be important for TCS.” Kevin Collupy, Analyst

On Wednesday Principal Analyst Patrick Heffernan, Senior Analyst Boz Hristov, Analyst Kevin Collupy and Research Analyst Kelly Lesiczka discussed IT services and professional services market developments of 2019 and expectations for 2020, including why TBR anticipates at least one IT services vendor or management consultancy calling an end to the term “digital.” Check out the replay of this webinar, “The end of ‘digital,’ anytime in TBR’s Webinar Portal.

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