IBM to acquire more companies to boost profitability

IBM to acquire more companies to boost profitability

US based tech giant IBM could acquire some more software companies to boost their profitability. The company aims to boost their software’s share of total profit to 50 percent as per market reports.

Software currently accounts for 20 percent of revenue but generates 40 percent of pretax earnings at IBM.

IBM happens to be the world’s second largest software maker after Microsoft. The company is likely to concentrate on the software division which is more profitable compared to other products and services.

IBM’s Steve Mills spoke about their plans: “We’re moving more and more toward the commercial off-the-shelf model.”

This model sees their customers buying IBM software to use it in their own products and offerings.