Biggish Blue IBM’s latest quarterly results failed to impress investors despite the fact that it managed to beat forecasts.
Wall Street was concerned that the figures seemed to show that corporate IT spending was sliding and IBM stock fell by three percent.
Analysts complained that IBM had not expanded quick enough in key regions and businesses. IBM said total services signings, which is an indicator of future growth, climbed to $12.3 billion in the third quarter, in line with expectations.
But the growth rates IBM experienced in each of the regions was slowing down and the public sector is exhibiting no growth.
Revenue rose eight percent to $26.16 billion, marginally worse than the average forecast of $26.26 billion.
The results were propped up by recurring revenue contracts that helps keep IBM’s results steady in strong and weak economies, which had many thinking that IBM would have a better quarter than it had.
From the technology point of view, it appears that Biggish Blue is starting to coin it in from its cloud based operations.
IBM said revenue from cloud computing in the first nine months of this year was twice as much as in full-year 2010.