This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

IBM CEO Rometty: 'We Are Not Exiting Hardware'

With regard to transforming industries, the CEO noted IBM's business analytics revenue rose 9% in 2013, led by Global Business Services and Software. "This is already a nearly $16 billion business for us, and we have raised our expectations for it," she wrote. Just over a year ago, the tech giant increased its 2015 revenue target for analytics and big data to $20 billion from $16 billion.

Big data refers to the management of vast quantities of unstructured data, or information that is outside the realm of traditional databases. Examples include email messages, PowerPoint presentations, audio, video and social media information. IBM ChartIBM data by YCharts

Addressing the opportunity in cloud, Rometty wrote that IBM's cloud business grew 69% in 2013, generating $4.4 billion in revenue. "As we actively embrace cloud in order to deliver 'IBM as a Service' to our clients, we expect to see significant benefits in client experience, revenue growth and enterprise productivity," she wrote.

Experts have already identified 2014 as a crucial 12 months in IBM's 103-year history. The company has kicked off the year with a slew of major announcements such as the Lenovo deal, billion-dollar investments in Watson supercomputer and cloud technology and plans to rebalance its workforce.


Jeffrey Sonnenfeld, senior associate dean for Executive Programs at The Yale School of Management and an expert on strategic leadership, applauded IBM's shifting focus. "It's a tremendous model of an iconic brand profoundly refreshing itself from stem to stern," he said, in a phone interview. "They now have the technology infused business tools that give them business service leverage that nobody else has."

(Sonnenfeld is a former member of TheStreet's Board)

As one of the tech sector's best-known dividend payers, IBM's cash position is always of interest to shareholders. The tech giant's free cash flow, crucially important for generating healthy dividends and share repurchases, was $15.02 billion in 2013, a decrease of $3.16 billion from the prior year. Nonetheless, IBM returned $17.92 billion to shareholders in 2013 - $13.86 billion in gross share repurchases and $4.06 billion in dividends.

IBM shares, which have fallen 7.51% in the last 12 months, closed up 0.02% at $187.68 during Friday trading.

--Written by James Rogers in New York.

>Contact by Email.

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,964.88 -118.92 -0.70%
S&P 500 1,982.66 -5.32 -0.27%
NASDAQ 4,457.6270 -14.4810 -0.32%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs