Comment by sytse
7 years ago
IBMs revenue comes from consulting but a lot of their profit comes from software https://news.ycombinator.com/item?id=18322772 with a bit more context on how I view this deal.
7 years ago
IBMs revenue comes from consulting but a lot of their profit comes from software https://news.ycombinator.com/item?id=18322772 with a bit more context on how I view this deal.
Is "Cognitive Solutions" mainly their AI efforts? [1] If that's the case, and given the terrible feedback they've received from many of their Watson customers (and anecdotes from people working on it)... I am tempted to say that the future is bleak for IBM, and that people will ultimately discover that they were paying a fortune for something that does not match what's advertised (they've put millions into advertising Watson with nonsensical ads)...
...but then again, many enterprise solutions that are incredibly over-engineered, slow and costly are still alive and kicking, so who knows.
[1] https://www.ibm.com/watson/advantage-reports/getting-started...
Cognitive Solutions is nominally their AI solutions but actually includes a lot of legacy enterprise stuff put in that basket to make the numbers look better. Wall Street analysts don't dig enough to publicize any of this fiddling.
Software income is because those fine consultants pushed the IBM Solution on unsuspecting customers.