IBM chief executive Ginni Rometty sat down with CNBC's David Faber ahead of the company's investors meeting on Wednesday.
Here are the snippets you need to know from the transcript:
- IBM has invested $30 billion dollars in the convergence between data and analytics. "Data is nothing unless you refine it," Rometty said. She also pointed to IBM's big data analytics business standing at $16 billion in worth, off about $100 billion in revenue — up by 9 percent year-over-year.
- Under Rometty, the company has made over 30 acquisitions in the last year, including
- For IBM, the growth markets in the long-run are "absolutely the right investment," Rometty said. That means areas such as the Middle East and Africa and Latin America. IBM's BRIC (Brazil, Russia, India, and China) markets
- Rometty noted that China, despite being a massive growth market, doesn't look like the rest of IBM's worldwide base. She said China represents less than 15 percent of the company's efforts, and is focused almost entirely on hardware. "[That] is not atypical for a market that's really developing, and as you put in big infrastructure to run banks, telcos... that's what our focus is." It's not to say IBM isn't looking at other areas to expand in the region, however. At its first-quarter earnings in April,
- IBM's software sales business remains important, but it could do with a jumpstart. It may be a $29.1 billion chunk of the company, but grew just 1.4 percent in 2013 — in some cases slower than its key competitors.
- On Africa as a market to work in, Rometty said IBM had been in the region since the 1930s, and
- Where are the massive acquisitions? IBM has systematically
- IBM spent $133 billion on research and development in the last decade. And that's likely not going to change any time soon. Rometty said: "We have not cut it back. I mean, my predecessors, myself, everybody has maintained because we're at your heart, an innovation company, you don't cut it back." Despite spending $13.9 billion on stock repurchases in 2013, the chief executive said if the company needed to invest more, it would.
- On Watson, another $1 billion is being invested in research . The company is opening up a lab in New York City in the near future, employing a couple of thousand people. "Watson is the foundation for this next era because all this big data, you need systems that learn that you don't have to program," she said, noting that there was "no doubt" that Watson will transform industries.