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C2090-603 IBM System z Solution Sales V6

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C2090-603 exam Dumps Source : IBM System z Solution Sales V6

Test Code : C2090-603
Test name : IBM System z Solution Sales V6
Vendor name : IBM
: 52 true Questions

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Cloudy weather forward for IBM and purple Hat? | killexams.com true Questions and Pass4sure dumps

the world is buzzing concerning the application business’s largest acquisition ever. This “online game altering” IBM acquisition of crimson Hat for $34 billion eclipses Microsoft’s $26.2 billion of LinkedIn, which set the outdated list. And it’s the third biggest tech acquisition in tradition in the back of Dell purchasing EMC for $64 billion in 2015 and Avago’s buyout of Broadcom for $37 billion the identical 12 months.

Wall highway certainly receives worried when it sees these lofty expense tags. IBM’s inventory changed into down 4.2 percent following the announcement, and there are likely more issues over a broader IBM selloff round how plenty IBM is buying crimson Hat.

This units the stage for sizable expectations on IBM to leverage this asset as a essential turning aspect in its history. considering the fact that IBM’s Watson AI poster child has did not create sustainable growth, could this be their most advantageous break to perquisite the ship once and for all? Or is this mega merger an advanced combat of cultures and items that will obtain it challenging to know the complete abilities?

big Blue’s been in sizable quandary

When the chips are down, it’s time to evaporate consummate in. sizable Blue actually stunned the expertise world when it announced it would attain its biggest deal ever and purchase purple Hat for a massive 11x top class. The reality is that pink Hat changed into now not necessarily looking to be obtained, so overpaying become the best doable alternative. And if IBM didn’t pay, Google, Amazon, VMWare or even Alibaba would have.

determined times demand desperate measures. IBM has been struggling to present expand in modern markets for reasonably some time. earlier than 2018, it had 22 straight quarters of earnings decline. And it has misplaced over $28 billion in earnings over the ultimate six years. Its revenue at the conclusion if 2017 became $seventy nine.14 billion, the lowest in 20 years and the more serious annual quantity due to the fact 1997, when IBM revenues had been $seventy eight.fifty one billion, except for inflation.

In early 2018, IBM become in a position to bear three consecutive quarters of revenue increase, however that changed into specifically due to the introduction of a brand modern line of IBM Z mainframe computers.

IBM has been a commerce in decline for decades. It’s difficult to sustain a company with shrinking revenue.

Too historic to grow?

IBM is greater than 100 years historical and certainly suffers from comparisons to younger and nimbler organizations reminiscent of Amazon, Google, fb, and Apple which suffer posted record boom in concomitant instances. Amazon’s recent gains suffer surpassed $2 billion, as an example.

in case you distinction IBM to Microsoft, a further historical world utility business, it’s startling to observe the inequity in how Microsoft has been capable of reposition itself as growth enterprise in response to the cloud.

In 1990, when Microsoft unencumber home windows three.0, IBM had revenues of $sixty nine billion (simplest $10 billion shy of what it has nowadays), while Microsoft had around $800 million. Microsoft surpassed IBM in profits in 2015 and crossed the $a hundred billion annual income sign in 2018.

during the ultimate several years, as IBM’s salary shrank, Microsoft invested in its “industrial cloud” commerce that encompasses Azure, workplace 365, and Dynamics 365, bringing in over $23 billion in modern revenues. Microsoft has currently been firing on consummate cylinders while IBM skilled boom stalls.

sluggish to win to the cloud

IBM’s success within the hardware business, particularly it’s Z-sequence mainframes, compelled it to protect its turf and distracted it from seeing the long sprint influence of cloud. AWS started providing public cloud capabilities lower back in 2006. As late as 2011, IBM become barely mentioning the commemorate “cloud” in its annual reviews or revenue calls. The enterprise eventually realized in 2013 that cloud computing turned into the future and made a hail-Mary buy of SoftLayer to bridge the hole, paying $2 billion and then investing an further $1 billion to combine the platform.

It’s difficult to set up great market share if you betide to’re late to the birthday party. Softlayer’s worldwide market share continues to be a far off fifth at the back of AWS, Microsoft, Google, and even fresher newcomer Alibaba, which passed IBM’s cloud revenues in June of 2018.

IBM made a number of different cloud-connected acquisitions, including Gravitant (a cloud brokerage and administration software), Bluebox (a non-public cloud as a service platform in keeping with OpenStack), Sanovi (a hybrid cloud recovery and migration application), Lighthouse and CrossIdeas (each cloud safety structures), and CSL international (a cloud virtualization platform).

despite these acquisitions within the cloud market, IBM has failed to truly monetize these items and gain market share in the cloud.

The enterprise has didn't capitalize on improvements before: Watson AI turned into at the accurate of its online game when it debuted on Jeopardy in 2011 to beat human contestants however directly fell at the back of Amazon, Google, and Microsoft.

Will red Hat be the savior?

pink Hat is the area’s greatest provider of open-supply enterprise application solutions. purple Hat’s bread and butter Linux enterprise continues to bring boom particularly as it powers many up to date AI and analytics workloads. Its mannequin has developed from merely on-premise to a in shape subscription enterprise used on public cloud platforms such as Amazon web functions (AWS), Microsoft Azure, and Google Cloud Platform (GCP).

purple Hat has moreover increased into open middleware options comparable to OpenStack, a cloud infrastructure platform, and OpenShift, a platform for managing software containers. OpenShift has lengthy been a neatly-saved covert as Cloud indigenous Computing foundation (CNCF) has grabbed lots of the headlines with its Kubernetes container orchestration platform. IBM has an break to leverage its advertising and marketing and world attain to motivate mainframe and legacy valued clientele to undertake OpenShift. These structures suffer been extremely leveraged in deepest and hybrid cloud deployments, exceptionally in industries fancy telecommunications.

There is not any doubt that pink Hat offers IBM a tons greater credible cloud story. however the question really is, is it too late?

The acquisition is definitely decent information for firms looking to shift traditional container-primarily based applications and digital machines to the cloud. however, Amazon has already captured a sizable a allotment of that market.

whereas the acquisition of pink Hat gives IBM a robust locality within the hybrid-cloud market, which may be ordinary for organisations that are not taking the time to decommission or re-architect legacy applications, the fast-becoming public cloud market can be the battleground of the long run.

Will the integration win messy?

IBM has had a spotty checklist when it comes to integrating and capitalizing on gigantic acquisitions.

while the vast majority of IBM’s M&A has been within the locality of software, profits within the segment has been disappointing. possibly what is concerning is that adjusting for acquisitions, IBM’s application commerce continues to order no — typically as a result of the fact that these massive acquisitions suffer develop into a allotment of the IBM fabric and enterprise as ordinary.

Can IBM integrate something as massive as pink Hat without interfering with its core cost proposition? Many worry that massive Blue will try to “blue wash” their platform of choice.

And there’s the question of even if these two distinctive company cultures can Come collectively – IBM, a gradual boom commerce no longer making lots development within the cloud space, and purple Hat, an innovative, open source commerce it really is constructing foundational components for working within the cloud.

We’ve viewed way of life clashes derail many different lofty profile mergers reminiscent of HP/Compaq, HP/Autonomy, Microsoft/Nokia, AOL/Time Warner, sprint/Nextel and Alcatel/Lucent. IBM will deserve to embody the open source neighborhood and method.

The joint company will puss vital platform choices on the cloud entrance. IBM has a public cloud that competes with AWS and Microsoft. but developers consume purple Hat’s Linux on many public clouds. whereas that multi-cloud strategy will wait on IBM herald income across the common public clouds, it will create combat with its own Softlayer cloud providing. IBM has struggled to maneuver this category of channel and product battle effectively in the past.

after which there is the way forward for IBM’s own AIX operating device vs. Linux — not to point out the SCO-IBM Unix lawsuit nonetheless lingering in the courts.

also to note are the lesser accepted pink Hat storage products fancy red Hat Ceph (an object file storage) and pink Hat Gluster (a NAS product). As pink Hat integrates into IBM’s hybrid cloud community, these storage products should be separated from IBM, which might create confusion and conflict.

So while IBM definitely faces loads of possibility with the acquisition, there is no guarantee this massive wager will repay. IBM crucial a daring flow. however in the brief time period, we're unlikely to peer any surprising movement of IBM’s locality within the public cloud space. consummate eyes might be on its potential to catapult into the hybrid cloud market. For that, the company will deserve to obtain sure it doesn’t win in its own way.

Frank Palermo is the government vice president at Virtusa’s global Digital enterprise, the locality he's liable for expertise practices in UX, mobility, social, cloud, analytics, sizable records, and IoT.


IBM appears to Disrupt Scientific research on the Blockchain | killexams.com true Questions and Pass4sure dumps

The consume situations for distributed ledger know-how are on the upward thrust, as evidenced by using IBM’s most recent patent application for open scientific research on the blockchain.

The tech significant envisions a device through which a blockchain represents an scan with individual blocks created from assignment accessories together with research data, records evaluation and outcomes as well as publish-records analysis and more consummate with block-linking capabilities to mirror the repute of adjustments. The patent, which changed into filed with the U.S. Patent and Trademark workplace at yr-conclusion 2017, comes on the heels of a separate blockchain patent filed through IBM with an augmented fact and gaming focal point.

The scientific research neighborhood has been plagued with an absence of transparency for information assortment tied to the evaluation process, based on which the blockchain is a probable antidote. Chief among the many concerns is a scarcity of “devoted facts” and maintaining assistance from unauthorized changes, consummate of which the blockchain solves with points fancy immutability and information security.

IBM isn’t the best entity that is calling to disrupt this manner amid what has been described as a “reproducibility calamity in analysis” and falsified statistics. however previously, different solutions involving the blockchain suffer fallen brief in addressing key features surrounding confidentiality, accessibility, using algorithms for initiatives akin to “computerized correction” and greater, consummate of which IBM takes on in its patent software. The company moreover features to “confined structures that allow for sharing suggestions about scientific research and showing transparent records collection and evaluation steps,” which interferes with researchers getting credit score for the work they’ve performed.

IBM’s solution contains a nimble computing environment for experiments on the blockchain, one that depends closely on however isn't restricted to a cloud computing model during which statistics uploaded to public databases can moreover be tracked. They relate a blockchain gadget that is 2-pronged, made out of both “the trustworthiness of the blockchain concept with open scientific research.” Their know-how accomplishes this by placing scientific experiments on the blockchain, together with “records accrued, analysis performed and/or consequences finished and in doing so bolsters the “trustworthiness and reproducibility of the statistics and effects” amid the immutable nature of the blockchain.

IBM describes a “first obscure of research statistics and a 2d obscure of evaluation records representing a log of an evaluation performed on the analysis records.” The expertise isn’t for static tips because the records can moreover be analyzed for the “reliability and provenance” of the guidance.

average, the know-how is designed to speed up the scientific analysis procedure, giving the analysis neighborhood extra rig to compile, analyze, draw conclusions and obtain corrections on their work, a procedure that additionally spills into peer stories, replicating experiments and evaluating the relevance of information consummate with the profit of statistics security it truly is inherent with the blockchain.

Featured picture from Shutterstock.

The submit IBM looks to Disrupt Scientific analysis on the Blockchain regarded first on CCN.


C2090-603 IBM System z Solution Sales V6

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Killexams.com C2090-603 Dumps and true Questions

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C2090-603 exam Dumps Source : IBM System z Solution Sales V6

Test Code : C2090-603
Test name : IBM System z Solution Sales V6
Vendor name : IBM
: 52 true Questions

I need dumps of C2090-603 exam.
A few edifying men cant bring an alteration to the worlds way but they can only order you whether you suffer been the only guy who knew how to attain this and I want to be known in this world and obtain my own sign and I suffer been so lame my whole way but I know now that I wanted to win a pass in my C2090-603 and this could obtain me illustrious maybe and yes I am short of glory but passing my A+ exams with killexams.com was my morning and night glory.


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Cloudy weather ahead for IBM and Red Hat? | killexams.com true questions and Pass4sure dumps

The world is buzzing about the software industry’s largest acquisition ever. This “game changing” IBM acquisition of Red Hat for $34 billion eclipses Microsoft’s $26.2 billion of LinkedIn, which set the previous record. And it’s the third largest tech acquisition in history behind Dell buying EMC for $64 billion in 2015 and Avago’s buyout of Broadcom for $37 billion the identical year.

Wall Street certainly gets nervous when it sees these lofty cost tags. IBM’s stock was down 4.2 percent following the announcement, and there are probably more concerns over a broader IBM selloff around how much IBM is paying for Red Hat.

This sets the stage for massive expectations on IBM to leverage this asset as a critical turning point in its history. Given that IBM’s Watson AI poster child has failed to create sustainable growth, could this be their best break to perquisite the ship once and for all? Or is this mega merger a complicated clash of cultures and products that will obtain it difficult to realize the complete potential?

Big Blue’s been in sizable trouble

When the chips are down, it’s time to evaporate consummate in. sizable Blue certainly shocked the technology world when it announced it would attain its biggest deal ever and purchase Red Hat for a huge 11x premium. The reality is that Red Hat was not necessarily looking to be acquired, so overpaying was the only viable option. And if IBM didn’t pay, Google, Amazon, VMWare or even Alibaba would have.

Desperate times summon for desperate measures. IBM has been struggling to demonstrate growth in modern markets for quite some time. Before 2018, it had 22 straight quarters of revenue decline. And it has lost over $28 billion in revenue over the past six years. Its revenue at the cease if 2017 was $79.14 billion, the lowest in 20 years and the worse annual number since 1997, when IBM revenues were $78.51 billion, excluding inflation.

In early 2018, IBM was able to bear three consecutive quarters of revenue growth, but that was mainly due to the introduction of a modern line of IBM Z mainframe computers.

IBM has been a commerce in decline for many years. It’s difficult to sustain a commerce with shrinking sales.

Too frail to grow?

IBM is more than 100 years frail and certainly suffers from comparisons to younger and nimbler companies such as Amazon, Google, Facebook, and Apple that suffer posted record growth in recent times. Amazon’s recent profits suffer surpassed $2 billion, for example.

If you contrast IBM to Microsoft, another frail world software company, it’s startling to observe the inequity in how Microsoft has been able to reposition itself as growth company based on the cloud.

In 1990, when Microsoft release Windows 3.0, IBM had revenues of $69 billion (only $10 billion shy of what it has today), while Microsoft had around $800 million. Microsoft surpassed IBM in revenue in 2015 and crossed the $100 billion annual revenue sign in 2018.

Over the past several years, as IBM’s revenue shrank, Microsoft invested in its “commercial cloud” commerce that encompasses Azure, Office 365, and Dynamics 365, bringing in over $23 billion in modern revenues. Microsoft has recently been firing on consummate cylinders while IBM experienced growth stalls.

Slow to win to the cloud

IBM’s success in the hardware business, specifically it’s Z-Series mainframes, forced it to protect its turf and distracted it from seeing the future repercussion of cloud. AWS began offering public cloud services back in 2006. As late as 2011, IBM was barely mentioning the word “cloud” in its annual reports or earnings calls. The company finally realized in 2013 that cloud computing was the future and made a hail-Mary purchase of SoftLayer to bridge the gap, paying $2 billion and then investing an additional $1 billion to integrate the platform.

It’s difficult to establish significant market share when you’re late to the party. Softlayer’s worldwide market share continues to be a distant fifth behind AWS, Microsoft, Google, and even fresher newcomer Alibaba, which exceeded IBM’s cloud revenues in June of 2018.

IBM made several other cloud-related acquisitions, including Gravitant (a cloud brokerage and management software), Bluebox (a private cloud as a service platform based on OpenStack), Sanovi (a hybrid cloud recovery and migration software), Lighthouse and CrossIdeas (both cloud security platforms), and CSL International (a cloud virtualization platform).

Despite these acquisitions in the cloud market, IBM has failed to truly monetize those products and gain market share in the cloud.

The company has failed to capitalize on innovations before: Watson AI was at the top of its game when it debuted on Jeopardy in 2011 to beat human contestants but quickly fell behind Amazon, Google, and Microsoft.

Will Red Hat be the savior?

Red Hat is the world’s largest provider of open-source enterprise software solutions. Red Hat’s bread and butter Linux commerce continues to deliver growth especially as it powers many modern AI and analytics workloads. Its model has evolved from purely on-premise to a healthy subscription commerce used on public cloud platforms such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP).

Red Hat has moreover expanded into open middleware solutions such as OpenStack, a cloud infrastructure platform, and OpenShift, a platform for managing application containers. OpenShift has long been a well-kept covert as Cloud indigenous Computing Foundation (CNCF) has grabbed most of the headlines with its Kubernetes container orchestration platform. IBM has an break to leverage its marketing and global achieve to hearten mainframe and legacy clients to adopt OpenShift. These platforms suffer been highly leveraged in private and hybrid cloud deployments, especially in industries fancy telecommunications.

There is no doubt that Red Hat gives IBM a much more credible cloud story. But the question really is, is it too late?

The acquisition is certainly edifying word for enterprises looking to shift classic container-based applications and virtual machines to the cloud. However, Amazon has already captured a significant allotment of that market.

While the acquisition of Red Hat gives IBM a strong position in the hybrid-cloud market, which will be well-liked for enterprises that are not taking the time to decommission or re-architect legacy applications, the fast-growing public cloud market will be the battleground of the future.

Will the integration win messy?

IBM has had a spotty record when it comes to integrating and capitalizing on great acquisitions.

While the majority of IBM’s M&A has been in the locality of software, revenue in the segment has been disappointing. Perhaps what is concerning is that adjusting for acquisitions, IBM’s software commerce continues to decline — mostly due to the fact that these great acquisitions suffer become allotment of the IBM fabric and commerce as usual.

Can IBM integrate something as sizable as Red Hat without interfering with its core value proposition? Many terror that sizable Blue will attempt to “blue wash” their platform of choice.

And there’s the question of whether these two different corporate cultures can Come together – IBM, a behind growth company not making much progress in the cloud space, and Red Hat, an innovative, open source company that is building foundational components for operating in the cloud.

We’ve seen culture clashes derail many other lofty profile mergers such as HP/Compaq, HP/Autonomy, Microsoft/Nokia, AOL/Time Warner, Sprint/Nextel and Alcatel/Lucent. IBM will need to embrace the open source community and strategy.

The joint company will puss critical platform decisions on the cloud front. IBM has a public cloud that competes with AWS and Microsoft. But developers consume Red Hat’s Linux on many public clouds. While that multi-cloud approach will wait on IBM bring in revenue across the public clouds, it will create combat with its own Softlayer cloud offering. IBM has struggled to manage this type of channel and product combat successfully in the past.

And then there is the future of IBM’s own AIX operating system vs. Linux — not to mention the SCO-IBM Unix lawsuit still lingering in the courts.

Also to note are the lesser known Red Hat storage products fancy Red Hat Ceph (an object file storage) and Red Hat Gluster (a NAS product). As Red Hat integrates into IBM’s hybrid cloud group, these storage products will be separated from IBM, which could create confusion and conflict.

So while IBM certainly faces a lot of break with the acquisition, there is no guarantee this sizable bet will pay off. IBM needed a bold move. But in the short term, they are unlikely to observe any sudden movement of IBM’s position in the public cloud space. consummate eyes will be on its aptitude to catapult into the hybrid cloud market. For that, the company will need to obtain sure it doesn’t win in its own way.

Frank Palermo is the executive vice president at Virtusa’s Global Digital Business, where he is liable for technology practices in UX, mobility, social, cloud, analytics, sizable data, and IoT.


Big Deal for sizable Blue: IBM Is Buying Red Hat for $34B | killexams.com true questions and Pass4sure dumps

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In a bombshell dart over the weekend, IBM announced that it would acquire Red Hat in a deal worth $34B. sizable Blue announced that it would proffer $190 per share of Red Hat in a cash transaction that represents a substantial premium over the latter’s current valuation. Red Hat stock closed at just $116.68 on Friday and was down slightly ultimate week after missing analyst estimates, though the company increased subscription revenue by 20 percent.

This deal is the largest ever for an open source company and the third-largest tech deal ever.

“The acquisition of Red Hat is a game-changer. It changes everything about the cloud market,” said IBM chair and CEO Ginni Rometty. “IBM will become the world’s #1 hybrid cloud provider, offering companies the only open cloud solution that will unlock the complete value of the cloud for their businesses.

“Most companies today are only 20 percent along their cloud journey, renting compute power to carve costs,” she said. “The next 80 percent is about unlocking true commerce value and driving growth. This is the next chapter of the cloud. It requires shifting commerce applications to hybrid cloud, extracting more data and optimizing every allotment of the business, from supply chains to sales.”

IBM is clearly playing up the cloud software angle rather than Red Hat’s 25 years of promoting and developing Red Hat Enterprise Linux. The word “cloud” appears 38 times in IBM’s press release announcing the deal. The word “Linux” appears 3 times.

It’s tricky to win a sense of how this will repercussion IBM’s product offerings, in allotment because IBM is rather difficult to analyze. Next Platform breaks down some of how IBM deliberately obfuscates some of its commerce segment reporting by mixing software and hardware in the identical categories.

Credit: Next Platform

IBM has made a major shove into providing cloud infrastructure with its IBM Cloud Private service, but it’s not lucid if the company intends to shove into this space with its own hardware. While the company offers both System z and Power-derived cloud options, Next Platform reports that the bulk of the company’s offerings are apparently x86-based.

Pushing into cloud services echoes the work that companies fancy Microsoft and Amazon suffer been doing, and may be an valuable future revenue source. And Red Hat has its own subscription service generating hundreds of millions of dollars of revenue already. That’s an valuable asset to IBM in and of itself — the company has been on a downward revenue trend for years. The company’s revenues fell in its most recent quarter after three quarters of growth — but those three quarters were preceded by five years of behind decline.

Bets on Watson haven’t paid off to date despite huge investments, and the thinking is that IBM may be looking for a different angle and manner of improving its own bottom line. The company has apparently decided to obtain a huge bet on cloud services and Red Hat’s expertise in the hopes of improving its own near-term outlook. There may moreover be hoped-for synergies simply in owning one of the most valuable developers of Linux and ensuring that future Linux-based cloud offerings are optimally tuned for IBM’s own products. It’s not lucid how this will repercussion the development of its AI and machine learning projects; IBM has previously done work in helping companies sprint AI and ML workloads on their own hardware.

Now Read: IBM Unveils 19TB SSD With Everspin MRAM Data Cache, IBM Watson Recommends Unsafe Cancer Treatments, and Floating IBM Robot Ships Out to International Space Station


Are Analysts Overly Optimistic After IBM’s Q3 Report? | killexams.com true questions and Pass4sure dumps

© Wikimedia Commons After International commerce Machines Corp. (NYSE: IBM) reported its third-quarter pecuniary results after the markets closed on Tuesday, investors ultimately were hugely disappointed and sent shares lower, making it the worst performing Dow Jones industrials stock on Wednesday. However, analysts maintained optimism for the tech giant, looking past this hiccup.

24/7 Wall Street has included some brief highlights from the earnings report, as well as what analysts are epigram about the difficult after the fact.

Big Blue said that it had $3.42 in earnings per share (EPS) and $18.8 billion in revenue, compared with consensus estimates of $3.40 in EPS and $19.1 billion in revenue. The identical period of ultimate year reported had EPS of $3.26 and $19.15 billion in revenue.

In terms of its segments, IBM reported as follows:

Cognitive Solutions (includes solutions software and transaction processing software) — revenues of $4.1 billion, down 6% (down 5% adjusting for currency), with growth in Watson health, security solutions, and key strategic areas in analytics.Global commerce Services (includes consulting, application management and global process services) — revenues of $4.1 billion, up 1% (up 3% adjusting for currency), led by consulting. monstrous profit margin increased 270 basis points.Technology Services & Cloud Platforms (includes infrastructure services, technical support services and integration software) — revenues of $8.3 billion, down 2% (flat year to year adjusting for currency), with growth in cloud revenue. monstrous profit margin increased 120 basis points.Systems (includes systems hardware and operating systems software) — revenues of $1.7 billion, up 1% (up 2% adjusting for currency), driven by growth in Power and IBM Z.Global Financing (includes financing and used rig sales) — revenues of $388 million, down 9% (down 7% adjusting for currency).

As for the analysts, Nomura Instinet reiterated a Buy rating with a $170 cost target. The difficult believes that IBM’s modest sales miss is aggravated by weakness in growth engines cloud and analytics. However, Nomura Instinet sees signs that underlying sales trends remain healthy and monstrous margins show sustainably stronger, and IBM is on track for its 2018 EPS and free cash flow (FCF) goals.

Wedbush maintained a Neutral rating with a $185 cost target. The difficult thinks that more drastic changes are needed at IBM. Its report said:

Maintain NEUTRAL rating post mixed quarterly performance (revenue miss, slightly better than expected CEPS) as the “growth” areas at IBM, namely Strategic Imperatives, Cognitive and Cloud are yet to present growth consistency/acceleration while profitability performance moreover remains unconvincing (assuming pockets of underperforming hardware/software/services businesses). They continue to believe that only undertaking the difficult path of aggressively terminating/restructuring underperforming units, hence, sacrificing top line growth for generating margin/FCF improvements will likely generate significant return to shareholders. As is, IBM’s portfolio of commoditized, legacy “tech” products and services will continue to cap the performance of the entire operation.

Merrill Lynch reiterated a Buy rating with a $200 cost objective. The difficult views IBM as a defensive investment given its lofty exposure to recurring sales, cost-cutting levers, solid equipoise sheet, potential share gains and relatively stable margins. Ultimately, Merrill Lynch believes that IBM will embark on further cost-cutting and enhance its services and software offerings through acquisitions. Longer term, IBM is expected to engage share in IT spending with its cloud and AI initiatives.

Here's what a few other analysts had to say:

Morgan Stanley has an Overweight rating with a $168 cost target.BMO Capital Markets has a Market perform rating and a $164 target.Cantor Fitzgerald has a Neutral rating with a $140 cost target.

Shares of IBM were ultimate seen down 6% at $136.00 on Wednesday, with a consensus analyst cost target of $163.30 and a 52-week trading orbit of $133.43 to $171.13.



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