SEC: No Penalties for IBM Over Cloud Revenue Investigation
The SEC investigation into how IBM reports its cloud computing revenue that began more than a year ago has come to an end, and the SEC has recommended no action be taken against Big Blue. According to the technology giant last summer, it learned back in May 2013 that it was the subject of a Securities and Exchange Commission (SEC) investigation regarding how it reports revenue from its cloud computing business.
The SEC investigation into how IBM (IBM) reports its cloud computing revenue that began more than a year ago has come to an end, and the Securities and Exchange Commission (SEC) has recommended no action be taken against Big Blue. According to the technology giant last summer, it learned back in May 2013 that it was the subject of a SEC investigation regarding how it reports revenue from its cloud computing business.
No other details about exactly what the SEC was investigating or whether it had to do with specific product lines has ever surfaced. But IBM has maintained since last summer that it was doing no wrong. And it appears the SEC now agrees with that assessment.
According to an official statement, “Based on the information to date, the Division of Enforcement does not intend to recommend any enforcement action by the Commission against IBM.” Good news for IBM, but one does wonder what piqued the SEC’s interest in the first place.
IBM’s publicly reported financial figures are a bit of a mystery. Its numbers are buried within larger categories of lines of business, so they can be difficult for outsiders to scrutinize. For instance, IBM claims its public and private cloud businesses are doing well, but it’s challenging to tell exactly how well based on financial figures from the likes of a large overall business category.
Cloud is obviously becoming a greater portion of IBM’s overall revenue, and the company is frequently going head-to-head against competitors such as Amazon Web Services. As we noted in August 2013, it would be nice for partners to see more detailed information on the finances surrounded Big Blue’s various cloud initiatives, particularly since they have evolved considerably since the SEC investigation was brought to light.
