This kind of business is extremely hard to scale, compared to a true software or hardware company innovating and licensing/selling products. IBM does have a ton of resources behind Watson, but that's still basically an enterprise services contract sale, and not much of a cloud product.
from my own dealings with their teams, they over complicate and over-process everything. They have lost many high $$ contracts in the past several years in the fed gov.
Also in the past IBM had an integrated value stack of hardware and software they provided (AS/400 and so on), these are being replaced by commodity cloud based servers running linux or windows. So their consulting model is being disrupted. There's still money in it, but probably not the amount of money they're used to, same sort of thing is happening in Oracle I'd guess.