Mike, with regard to IBM's services revs and >> You have to price services below what better and more experienced cos. would consider breakeven, and then assume profits on long term contracts, a disproportionate amount of which accrue immediately
I used to work at IBM Global Services, and at least in our division's case, revenues were counted only against the hours we billed. I would assume that these rules would be in place organization-wide, in which case (most of)the services revenues might be real?
Also, in services, when you say "better and more experienced companies", I don't think that the quality of work that IBM Global Services does would be considered poor by anyone. Also can't think of better companies since EDS, CA and a host of other consulting firms have been standing still for a pretty long time. Of course, could be that these are the honest ones, and IBM is cooking services revs. Really won't know for a few years
Just my 0.02$
Monish |
