IBM Chairman and CEO Arvind Krishna says that the recent slowdown in infrastructure deals was driven by a temporary reprioritization of customer capital spending rather than weakening demand. Speaking to Ed Ludlow and Romaine Bostick on Bloomberg Tech, Krishna says that about one-third of delayed products have already resumed.<br>See omnystudio.com/listener for privacy information.

 IBM CEO Arvind Krishna Talks Infrastructure Deals

Bloomberg Talks

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[SPEAKER_01] Shares of IBM trading near their lowest level since November 24, September of 2024. The company dialed back its full year sales forecast after a pretty steep drop in mainframe sales, which weighed on results. Joining us from New York is the co-host of Bloomberg's The Close, Ramain Bostic, alongside IBM CEO Arvind Krishna. Ramain.

[SPEAKER_04] Arvind, you've seen the reaction amongst investors here. Some concerns here about that lowered sales forecast overall, as well as softness in software. You've characterized this as basically a shortfall for one quarter that is limited to capex sensitive areas of the portfolio. But that's still a meaningful area of your portfolio. Were sales coming into that quarter? Was that pipeline overstated?

[SPEAKER_02] I don't believe so. Because when we look at all the deals that didn't close, I think we have done enough verification, including with the clients, to know that they were very real. And it was a reprioritization of the capital, and it was a reprioritization of the capital. This was pretty confined to, I'll call it the Fortune 100, the deals that were within a subset of those. Now, one third of what didn't happen has already come back.

IBM CEO Arvind Krishna Talks Infrastructure Deals

Read the full transcript

The candid version is on a podcast,
not the earnings call.

IBM CEO Arvind Krishna Talks Infrastructure Deals

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.