IBM last week announced for the quarter ending in September, though revenue fell slightly short of analyst expectations. IBM quarterly profit rose year over year by 7 percent to US$3.8 billion, while sales were up 8 percent to $26.16 billion. Bright spots included software revenue, up by 13 percent to $5.8 billion; Power Systems revenue, up by 15 percent; and cloud-oriented technology sales, which doubled from last year.

"Sam had the courage to transform the company based on his belief that computing technology, our industry, even world economies would shift in historic ways," Rometty said in a statement. "Today, IBM's strategies and business model are correct. Our ability to execute and deliver consistent results for clients and shareholders is strong."

Despite concerns over sales, IBM last week displayed confidence in its ability to navigate a tough economic climate, raising earnings expectations for fiscal 2011 to at least $13.35 per share from $13.25.

Rometty's biggest challenge will be continuing to drive profits in a weak global economy, IDC's Gens said. If conditions don't improve, "People aren't going to be buying technology at the pace that IBM ... and the rest of the industry would like to see." However, Rometty has been successfully running sales at IBM throughout the downturn, he added.

IBM's orderly move to a new CEO sets it apart from some high-profile rivals, Gens said. For example, Hewlett-Packard recently went through two abrupt changes in top management in less than a year, and Yahoo CEO Carol Bartz was forced out last month under pressure from shareholders.