I think what many people don't realise is the insane amount of research that is being done at IBM. In lots of areas, I know of quantum computing, silicon photonics, process development for integrated circuits, processors... They still file the most patents per year in the world by quite a margin (9000, the only one being remotely close is Samsung at 6000, for comparison apple and MS have 3000) and while I am not a big fan of patents, I do realise that one has to do significant research for getting this amount.

They probably could just run much of the business just on the licencing fees they get. If you think they are not doing anything you're likely not their target customer.