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IBM makes a lot of money selling ELAs (Enterprise License Agreements) to their customers. An ELA is like buying a bundle of IBM hardware, software and services. It's like buffet dining.

Big companies are no longer buying the buffet and are increasingly opting to go ala carte. Or alternatively, they are negotiating IBM down on prices for the buffet.

It's true that IBM is switching its focus to Cloud services and Watson. However, these are just new, unproven items on the buffet menu.

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