When it comes to information technology companies, Fool analyst Eric Bleeker thinks big can be better. The IT industry is currently dominated by eight companies worth more than $100 billion each -- the sort of enormous size and scale that makes it difficult for investors to track just exactly what a company is doing in its operations.
But in the case of IBM (NYSE: IBM ) , Eric isn't scared off by the complexity; in fact, he's attracted by it. That's because IBM's strategy is to do everything: The company sells computer hardware, markets the software to utilize it, and then consults on how businesses can integrate and manage both in its operations. This end-to-end involvement embeds IBM in its partners' operations -- and makes the company very difficult to get rid of without risking enormous switching costs.
IBM also has a few things in the works, like a focus on software acquisitions to keep up growth and a goal to double profits by 2015. Also, while other tech companies -- such as Apple -- take a lot of heat for hoarding cash, IBM leverages its balance sheet better than any other tech company.
Is IBM a buy? Watch the video here.
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