Wednesday, October 19th, 2011
IBM’s Q3 results would, for many other IT vendors, be seen as encouraging, but the company is perceived as a key market indicator and faces high investor expectations. We do not believe that the detail within the results indicates any specific areas of weakness within the business, but rather reflects the impact of continued economic uncertainty.

In particular, EMEA (Europe, the Middle East and Africa) revenues were flat, when adjusted for currency, which confirms the cautious approach being taken by enterprise IT buyers. Whilst there is still investment in innovative projects targeting business growth, there is also delay in less strategic projects such as infrastructure refreshes, and sales cycles have become extended.

IBM has made encouraging progress in the areas that it sees as important for future growth, including cloud computing, business analytics, and its smarter cities initiative, but it will need to continue this growth to offset the overall slackness of the enterprise market. Overall, we believe IBM is still well positioned to weather this uncertainty, with positive longer term prospects.


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Tanisha Kaul, the Ovum press office
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Tim Jennings, Research Fellow & Chief Analyst



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