India, July 15 -- When Arvind Krishna wrote to IBM investors on July 14, he did something technology leaders seldom do so openly. He admitted that IBM had seen a change unfolding in the market, but had failed to respond quickly enough.

"These conditions require our teams to execute perfectly, and this quarter we faltered. We did not adapt and move quickly enough, and numerous large deals failed to close on the timelines we expected, driving the majority of our shortfall," the IBM Chairman, President, and Chief Executive Officer wrote.

Wall Street's response was brutal.

IBM shares fell by about 25%, wiping nearly USD 70 billion from the company's market value. Reuters estimated during trading that IBM was on course to lose USD 70 billio...