By Andrew Fenton IBM has said it will report a “significant” decline in the software sales of the business that it created and is building to make it a major player in the digital business.
In a conference call with analysts, chief executive Ginni Rometty said the business’s software sales would fall 10% to 15% in 2017.
The decline is “very significant” and the company is “in the midst of a major transformation” of the software business, she said.
“This means that we will be selling less software than we did in 2017,” Ms Romett said.
Ms Rometts statement came after IBM announced its results in its most recent quarterly financial report on Friday.
The company reported a loss of $1.1 billion and said it had a net loss of more than $10 billion in the year to March 31.
However, IBM also said its software business had been able to generate positive net profit growth, partly offset by lower software unit sales.
“As we have shown time and time again, we are at the forefront of innovation and cutting-edge technology that will make a difference to the way we do business,” Ms Vettese said.
The business Ms Ronty described as a “central component” of IBM’s digital business is the company’s Watson technology, which is used by businesses to assess the accuracy of data, create reports and provide business intelligence.
“The Watson platform enables IBM to provide its customers with data that can be used to build predictive analytics, and IBM Watson also enables businesses to create information that can improve their performance, business processes and deliver on their goals,” she said in her statement.
The Watson business is in the process of becoming a “digital powerhouse” and will become “the leading platform” in the next two years, Ms Roult said.IBM also said it would use its cloud computing platform, Azure, to help deliver the “most agile, best-performing cloud service in the industry”.
“We believe that Azure is the future of cloud computing and we look forward to working with customers to continue to deliver on this vision,” Ms Cottle said.