I don't think you have a good understand of IBM's business.
IBM is divesting its low margin hardware business. Currently, IBM's gross profit margin is 51% driven mainly by software sales, services, and global finance. IBM wants to jettison lower margin business units (margins have been falling in hardware for years, it's a race to the bottom) and instead focus resources on the more profitable business units.
"They are now moving up-market to software and services..."
IBM is not moving up-market, they've been "up market" for many many years. Low margin hardware revenue has been quite behind software and services for many years. IBM has not failed to see it, instead, this is a move anybody paying attention has known was coming for years.
I don't think you have a good understanding of the Innovator's Dilemma. The research shows very clearly that companies like Lenovo will continue to eat away at IBM's lowest margin business, whatever it is, until IBM is gone has nowhere to go.
Look at the steel mills. They did the same exact thing IBM is doing now. Everyone applauded the massive steel mills the way that you are applauding IBM. And 100% of those mills are now out of business
The "business machines" in the name did not originally refer to computers. It referred to tabulating machines. The market for tabulating machines died, and was replaced by computers. IBM got out of tabulating machines, and into computers.
IBM is not in the business of selling computers. IBM is in the business of solving problems for other businesses. Over the past 100 years, how you solve problems for other businesses has changed, and IBM has changed along with it. Don't confuse the thing sold for the actual business.
Disclaimer: I work for IBM, but do not speak for it.
You are starting off with the wrong assumption that IBM will sit on its hands and just pay their bills with the extra 2.3B (and more from increased efficiency). Just look around. You are at a site which is frequented with brilliant minds teeming with innovative ideas. IBM is budding new business in very promising areas, and they want to focus on these. Just cut them some slack in their decision, because they are the ones who have been in the business in person, they see the whole picture, and they have the neck in the game.
(Disclaimer: I work for IBM, but these are my personal thoughts, and do not reflect company position.)
IBM is divesting its low margin hardware business. Currently, IBM's gross profit margin is 51% driven mainly by software sales, services, and global finance. IBM wants to jettison lower margin business units (margins have been falling in hardware for years, it's a race to the bottom) and instead focus resources on the more profitable business units.
"They are now moving up-market to software and services..."
IBM is not moving up-market, they've been "up market" for many many years. Low margin hardware revenue has been quite behind software and services for many years. IBM has not failed to see it, instead, this is a move anybody paying attention has known was coming for years.