Business Week: IBM should relocate in the era of cloud computing

View the latest quotes IBM needs to reposition itself in the cloud computing era: The latest issue of the US Business Week print edition is titled "IBM needs to reposition itself in the cloud Computing Era" (IBM Needs to reposition itself for the Cloud Computin Although IBM is a leader in technology in research and development, it has been difficult to translate these inventions into commercially valuable products, especially in the cloud computing and mobile industries, according to the review article of the G Era.　　In order to fully adapt to the development needs of the times, the company should discard the previous profit target and stock repurchase items, put money into the product, and truly realize the times. The following is the full text of the article: Market changes to look at a set of data: IBM's senior management team in the company's time on average dating back to 1985, and at that time, the Internet is still an internal project of the United States government, Steve Jobs has just used Apple to emerge.　　Rometty, the company's CEO, Ginni Rometty, who recently graduated from the Engineering College of Northwestern University for two years, joined IBM and has been in office since 1981. The management team is undoubtedly rich in experience. But the question is whether the tech giant is making the right strategy for the challenges they face in the 2013. IBM found that they were heading in the wrong direction in a major technological transformation.　　In the era of cloud computing, enterprise customers can lease server storage space and processing power, costs far less than from IBM to hire consultants and purchase hardware. The Rometty, who became CEO of IBM in January 2012, must embark on a strategic transition that would allow IBM to dominate the more rapidly growing markets of cloud computing, data analysis and mobile devices.　　She must lead IBM out of stasis – the company's core business has been in place for 5 consecutive years – and organic growth, rather than focusing on financial engineering and asset sales as before. IBM clearly has the ability to reinvent itself: at the start of the 1990, when the company lost billions of dollars and launched a massive layoff, they decisively shifted their focus from mainframe business to server, software and technology services, and in Gerstner (Lou Gerstner) and Palmisano (Sam　　Palmisano two under the leadership of the CEO to reproduce prosperity. Tied up. However, Rometty was tied to a promise by her predecessor: Palmisano promised investors and Wall Street analysts in 2010 that IBM's earnings per share would grow by 74%, from 11.52 dollars to $20 in 2015.　　In the current situation, IBM is making steady progress towards this goal through a $ tens of billions of worth of share buybacks, cost compression, business sales, and accounting adjustments – the company's earnings per share in 2013 will reach $16.72, according to Bloomberg.Kulbinder Garcha, a Swiss credit analyst Kurbind Gacha, said: "IBM has done everything, and is not actively investing in new business." He recently downgraded the IBM stock rating to "sell" (Sell). The shares have risen by about 1.5% this year, while the standard and Poole 500 index rose 18% per cent over the same period. "Their pattern of the past 8 years has not been adapted to future development.　　"Gyaca said. Although IBM is the inventor of cloud computing, market research firm Gartner listed IBM as the last of the 15 largest cloud computing services companies with the best quality in its August 19 report.　　And Rometty has only recently started investing in mobile apps. IBM may no longer be able to sustain profitable growth: although they exceeded expectations in the previous quarter, they did so after excluding the $1 billion trillion in costs associated with layoffs. "IBM has come to the end of its model of optimizing finance for profitable growth," said Brian Marshall, an analyst at the US market research firm ISI Group, Blaine Machel. "Cutting costs in order to cut costs, IBM has launched a massive layoffs-this year, the cost of layoffs for 1 billion U.S. dollars, and last year and the two years ago, respectively, 803 million and 440 million U.S. dollars." Rometty also forced U.S. hardware employees to leave unemployed on a one-third salary. The company also withdrew from some of its low-margin businesses.　　September 10, IBM will value 13 dollars of customer care outsourcing business, 505 million U.S. dollars sold to the IT service company Synnex. At IBM's annual investor conference in February this year, Rometty defended layoffs and asset sales, highlighting the importance of profitable growth. "If we don't, we're going to be much bigger than we are now, and it's likely to grow faster than it is now, but margins are likely to fall."　　"she said. Rometty declined to be interviewed, but she told investors last year that she had met with 500 of clients ' CEOs to see what they needed from IBM.　　This is the typical style of Rometty, when she was in the position of IBM Detroit Office System engineer, she quickly went all the way up and held several management positions. In public, she has looked at the future of science and technology for the next 20 years-and the world will be run by a variety of computers that can think like humans. She also often serves as a preacher of cloud computing and mobile computing. However, by the time she actually came to power, she did not have the investment she deserved to achieve this vision. Since she steered IBM, the company's research and development costs have not been growing.　　But Michael Fi, a spokesman for the company, said IBM was still investing in new growth areas. Fay Behind people IBM has often topped the U.S. patent list with billions of of billions of dollars in research and development costs, but it will still be a challenge to convert these inventions into business-value businesses. "The market is driven by social, mobile, data analysis and cloud computing, but they are not important companies in these areas, although they say so in promotional materials.　　"said Ivan Feinseth, analyst Ivan Fernces Tigress Financial, a US investment company. Since 2007, IBM has spent 6 billion of billions of dollars on the field of cloud computing, most notably the acquisition of SoftLayer. The company also said its cloud computing operations Battalion received 2015 will reach 7 billion dollars.　　However, most of the revenue was shifted from IBM's existing business to the cloud. In the cloud computing world, IBM is still in the shadow of the market leader Amazon. This year, Amazon has defeated IBM and robbed US Central Intelligence Agency (CIA) orders worth 600 million of dollars. "We used to have both cooperation and competition with IBM, but today, I never saw them in our deal," he said.　　"said Tom Erickson, CEO of the website management software maker Acquia." Tom Eriksen. IBM's biggest hope may be in the data analysis business, which employs hundreds of scientists and has invested in the development of business research projects such as Watson, a high-performance computer, and in the American quiz show "The Brink of Danger" (jeopardy!) Defeated the human player and won the championship. IBM has raised its 2015 data analysis business revenue target from $16 billion trillion to $20 billion.　　During this period, the company will strive to develop medical diagnostics and financial market analysis in a number of areas. Gyaca, of Credit Suisse, believes that if a comprehensive adjustment is to be made according to the needs of the times, IBM must abandon the short-term profit target set by Palmisano, forget the stock repurchase project, and then put the money into the product. and specifically to the software sector, "at least some more modern thinking people need to be introduced." "(Think FAR)