Those appear to be products - which is different than hiring IBM to develop something for you. IBM has had a storied history in tech from developing/popularizing the PC to OS/2 to their thinkpad laptops, to designing systems for the space shuttle, and natural language projects like the Watson. I don't think IBM lacks talent.

Its almost seems like when you can get away with milking the system, nobody seems to have any moral qualms in selling the government a $200 screwdriver.