IBM Sees Software Producing 50% Of Profit by 2010
IBM said Thursday it sees software accounting for nearly half of total profit by 2010, up from about 40% last year, as the company shifts toward more-profitable businesses from lower-margin segments such as computer hardware.
NEW YORK - IBM said Thursday
it sees software accounting for nearly half of total profit by
2010, up from about 40% last year, as the company shifts
toward more-profitable businesses from lower-margin segments
such as computer hardware.
IBM., the world's largest
technology services company, also expects "emerging country"
revenue to double by 2010, Chief Executive Samuel Palmisano
said at an investor briefing at the company's T.J. Watson
Research Center in New York.
Palmisano also said efforts to improve profitability in
IBM's services business, which accounts for about half of
revenue, should boost profit margins in that business by 2
percentage points by 2010.
IBM of Armonk, New York, expects so-called virtualization,
a fast-growing newer technology that lets large computers run
several operating systems simultaneously, to produce an
additional $1 billion in gross profit in the next three years.
IBM shares were down 45 cents at $105.42 in early trading
on the New York Stock Exchange. The stock is up 29% this
year as the company has boosted profit, mainly driven by its
higher-margin software businesses.
By: Philipp Gollner
