Wyly Wade

IBM’s Cloud Business: Ex-Employee Divulges Shortfalls

Image representing IBM as depicted in CrunchBase

Man IBM is have a rough couple of weeks, now an ex-employee is releasing documents that show IBM’s cloud revenue to not be as reported. The documents put IBM’s 2012 cloud-related revenue at $2.26 billion, a figure the company has declined to disclose publicly. In 2011, IBM did issue a roadmap that set forth the goal of reaching $7 billion in annual cloud revenue by 2015, so the much lower figure raises doubts about whether the company is on track. IBM also said in 2011 that only $3 billion of that total would come from net-new business, suggesting that $4 billion would be tied to cloud-based ways of delivering its current hardware, software and services. Now the SEC is looking into the cloud revenue recognition.

IBM’s Cloud Business: Ex-Employee Divulges Shortfalls – Cloud.

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