They've still done good research lately. This is just the nature of business I think. Eventually others catch up to where you are, and it is difficult to constantly remain competitive. A further problem in IBM's case, which maybe isn't as pronounced in other industries, is how quickly the computing landscape is changing.
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Yeah I wasn't trying to insinuate that they don't still have a great research department. But you can only see so many cuts happening over the years without thinking that it'll impact their bottom line eventually.
Whilst I'm sure these ~100,000 are from services and sales - I'm equally sure that if they had something unique to sell in the first place, they'd be doing a heck of a lot better.