IBM makes far more money on patent licensing than it does on mainframes.


>It's a common fallacy that IBM was in serious trouble because of its failure to dominate the PC business.
>Of course it missed a huge opportunity, but IBM was making, and still makes, tons of money on its mainframe lines.
>Lou Gerstner sold the PC-related businesses (great move - contrast that with the monumental blunder that HP made by buying Compaq) and added services as a major revenue source.