To add: they recently announced an investment of $3bn over 4 years in the IoT division, which will probably be focused mostly on analytics & will somehow tie in with Watson & Bluemix, which are the strongest pieces in their portfolio at the moment. [1]
They also broke out an additional "Education" unit within the IoT business unit, ostensibly to compete with PTC Thingworx, and Intel+Arduino, Raspberry Pi etc. in the student/teacher/maker market. [2]
To add further, IBM's biggest revenue source is not technology and software, but its IT/business services & consulting wing which is no different than most IT outsourcing companies in the world. Of course their products do influence some of the work done by these.
They also broke out an additional "Education" unit within the IoT business unit, ostensibly to compete with PTC Thingworx, and Intel+Arduino, Raspberry Pi etc. in the student/teacher/maker market. [2]
[1] http://www.businessinsider.com/how-ibms-3-billion-investment...
[2] https://www-03.ibm.com/press/us/en/pressrelease/47660.wss