IBM (NYSE: IBM) has seen revenue drop for 11 straight quarters as Chair and CEO Ginny Rometty seeks to reboot the tech giant. A new $1 billion investment in software defined storage called Spectrum is part of that effort. And billionaire Warren Buffett is betting that Rometty’s moves will pay off. 

In a filing on Tuesday, Buffett’s Berkshire Hathaway reported it had increased its stake in IBM to nearly 77 million shares, up some 7 million from the previous quarter.

Also Tuesday, IBM announced its IBM Spectrum Storage, which is designed to give customers faster access to data through cloud computing and in data centers. 

“IBM Spectrum Storage incorporates more than 700 patents and is designed to help clients transform to a hybrid cloud business model by managing massive amounts of data where they want it, how they want it, in a fast and easy manner from a single dashboard,” IBM said. “The software helps clients move data to the right location, at the right time, from flash storage for fast access to tape and cloud for the lowest cost.”

  • Read more: IBM spells out Spectrum offering details

The move comes as IBM is laying off thousands of existing workers while seeking to fill some 15,000 open positions in what Rometty sees as growth areas, including the cloud.

“We are investing in things that can be growth potential for us,” Tom Rosamilia, senior vice president of IBM Systems, told Bloomberg Television. “I actually have to prove it, but we’re in a good place.”

IBM is stepping up its efforts in so-called flash storage – a direct threat to EMC. Both companies have a major presence in the Triangle. IBM also no longer buys storage gear from NetApp, according to Bloomberg. 

 

Buffett’s Moves 

Buffett’s company also  unloaded its 41 million shares of Exxon Mobil Corp. and sold a smaller stake in ConocoPhillips as oil prices fell last fall.

Berkshire recorded a number of other moves during the last three months of last year, including buying 15.6 million shares of Deere & Co. stock.

Many investors watch the filings closely because they like to copy Buffett’s moves given his remarkably successful record. Buffett is chairman and CEO of the conglomerate based in Omaha, Nebraska.

Berkshire’s combined filing includes investments made by two other executives at the company, so it’s not always clear whether Buffett made the decisions.

Buffett has said investments smaller than $300 million are likely to be the work of Berkshire’s investment managers.

Another new investment revealed Tuesday was likely the work of either Todd Combs and or Weschler – Berkshire’s investment managers. Berkshire now owns 4.7 million shares of Twenty-First Century Fox Inc.

Berkshire increased its holdings in Charter Communications Inc., DaVita Healthcare Partners Inc., DirecTV, Liberty Global plc, MasterCard Inc., Suncor Energy Inc., Phillips 66, Precision Castparts Corp., Viacom Inc. and Visa Inc.
During the fourth quarter, Berkshire decreased its investments in National Oilwell Varco Inc. and Bank of New York Mellon Corp.

Besides investments, Berkshire owns more than 80 subsidiaries in a variety of industries, including insurance, utilities, railroads, retail and manufacturing.