IBM Cloud Revenue Investigation by the SEC

06 August 2013 Internet, IT & e-Discovery Blog Blog
Authors: Peter Vogel

With IBM cloud revenue estimated to reach $7 billion by 2015 the revelation the SEC is investing how IBM reports creates questions that may impact all cloud providers. IBM reported that:

In May 2013, IBM learned that the SEC is conducting an investigation into how IBM reports cloud revenue,…IBM is cooperating with the SEC in this matter.

IBM’s reporting of cloud revenue is the result of a rigorous and disciplined process,…We are confident that the information we have provided has been consistently accurate.

InfoWorld reported:

Cloud services are typically paid for on a monthly, subscription basis. While customers often ink multiyear deals, vendors can’t recognize the revenue in the same way they would for a large up-front sale of hardware or perpetual software licenses.

The SEC investigation may change cloud computing revenue and reporting, but since cloud computing has been around since 1964 with the advent of Dartmouth time sharing, so it’s doubtful the IBM is violating any SEC rules.

This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary. The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites. In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.

Authors

Related Services

Insights