IBM has a staf of over 300,000. The overwhelming majority of their products are built by their M+D labs for which I work.
They do not just sit back and rake it in. The business model you are referring to is a figment of your own imagination.
They market at businesses not at consumers in the main. Given that they make billions every year out of their software products, research et al, I think they are very successfull. I think what you are referring to is IGS ( IBM Global Services ) which is just one small part of IBM.
So yes, get your head out of your arse and go and look on IBMs site as to what they do.
Dave.