AMR Research views IBM's mixed 1Q05 financials as an indication that IT spending is increasingly influenced by Line-of-Business (LOB) involvement in IT buying decisions. The analyst firm conducted a spending survey recently which found that 49% of business executives make the final purchase decision for software to support their LOB. Here is how the shift is reflected in the IBM results:
- WebSphere has a very strong quarter, with revenue up 11%. WebSphere is the IBM technology for integrating applications and is its platform for business application support.
- Within IBM Global Services, their transformational outsourcing service revenue grew by 40%. Transformational outsourcing services work with LOBs and deliver technology-aided business process improvements.
- Also within IBM Global Services, bookings for the Engineering and Technology Services (its outsourced product engineering service) were up more than 90%, reflecting the trend for businesses to outsource more core product developing in order to accelerate new product delivery.