joining me to break down the numbers, anurag, james, and tim. anurag, i want to start with you.t's great to see you here in person. it seems like investors are split over ibm's future. you have people who are very optimistic and say that if ibm can transition into a mobile/cloud/social company, things look a lot better. which side are you on? anurag: they are both accurate in a way. the question is how long should you wait for it to happen. cloud is a small portion of the revenue for them. emily: what numbers are standing out to you right now? tim: a couple of things. this is a company still in transition. today where they have a backlog of 122 billion orders, services are up 17%, you could see that they are moving forward, not backward. i have followed ibm from the beginning. it is a company that is struggling. i think that the fundamentals suggest they are making progress. emily: looking at the headline numbers, what is standing out to you? james: it's interesting. these guys missed on the top line, as you talked about, and they missed in a couple of key areas. they missed on

anurag: very important.e one of the most important releases they have ever done, largely because they want one common platform for all devices and it is important for them to have that to increase the number of applications for their mobile devices. they really want to be a cloud company, but it really is still a pc company. where would you map their transition right now? anurag: they are one of the leading players at this point. they have done a good job over there. i would say that there are margins from that point that they haven't listed quite aggressively and over the last few years that have been paying off for a well area the question really is about the base of this pc centric operating system. what will happen next? that is the challenge. windows 10 has the ability to solve that. we know aboutl that? will this quarter illuminate that? getting that free upgrade on the 29th of july? anurag: it will take a few more quarters to see if we are seeing adoption across the different platforms. alix: what do

anurag: i don't think it answers any questions. it's going to take a while before you see the high-growth areas, cloud, analytics -- those able to catch up for the falling services and software business. this is a very small portion of their total revenue at this point. alix: when you take a look at hardware revenue, down 32%, software revenue, down 10%, how much more juice are they going to have to have in the back half of the year to meet their forecast, which they did reaffirm? anurag: on the call, we will find out if the macro weakness in europe or asia had anything to do with the purchase of software or hardware. in times of economic volatility, you do see people holding back and pushing it down in the second half. joe: are you seeing anything in the report that tells us about currency? is ibm indicating anything regarding that? anurag: it had about 9% impact on the total gross. i think this is what they were expecting going in as well. joe: thanks to anurag and julie. alix: a chief market strategist is with us. greece is fina