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.