IBM Plunges on Abandoned 2015 Earnings Forecast

The transcript discusses IBM's challenges in transitioning to cloud computing, highlighting issues with demand and execution. IBM's cloud strategy is scrutinized, revealing its lag behind competitors like Amazon and Rackspace. Financial guidance and the EPS roadmap are also addressed, with IBM lowering its expectations. The company is urged to invest more in R&D, particularly in cloud technology, to improve its market position.

What was one of the main challenges IBM faced in September?

• Increased competition from new startups

• Decline in demand for their products

• Regulatory issues in key markets

• Supply chain disruptions

How does IBM's cloud revenue compare to its total revenue?

• It makes up 25% of the total revenue

• It is 3% of the total revenue

• It constitutes 10% of the total revenue

• It is 50% of the total revenue

Which companies are ahead of IBM in terms of cloud trust according to the industry analysis?

• Amazon and Rackspace

• Dell and HP

• Oracle and SAP

• Google and Microsoft

What financial target did IBM lower its guidance to for the year?

• $14 a share

• $18 a share

• $20 a share

• $16 a share

What is IBM considering to improve its cloud strategy?

• Reducing workforce to cut costs

• Expanding into new geographical markets

• Increasing investment in R&D

• Acquiring smaller tech companies