Sunday, August 04, 2013

IBM 2Q report discloses SEC investigation of cloud computing revenue accounting

In its Form 10-Q report for the second quarter of 2013, IBM disclosed that in May of 2013 the company learned that the SEC is conducting an investigation into how IBM reports cloud revenue.  IBM indicated that the company is cooperating with the SEC in this matter.

The Form 10-Q also disclosed that, on July 8, 2013, the company announced that it had completed the acquisition of SoftLayer Technologies, Inc. (SoftLayer), based in Dallas, Texas, the world’s largest privately held cloud computing infrastructure company. Softlayer will enable the company to deliver the security, privacy and reliability attributes of private clouds with the economy and speed of public clouds. At the date of issuance of the financial statements, the initial business combination accounting (purchase price of approximately $2.0 billion) was not complete for this acquisition. The company said that it will accelerate the build-out of its public cloud infrastructure to give clients the broadest choice of cloud offerings to drive business innovation.