IBM's Future Looking Bleak: How Does It Compete in the Cloud Computing Era?

As reported in a fantastic cover story in Businessweek, IBM's  (NYSE: IBM  ) transition into the cloud computing era has been a bumpy one. For instance, IBM recently lost a major contract with the CIA, with Amazon.com (NASDAQ: AMZN  ) ultimately winning the deal. But it wasn't because Amazon cut prices so low that nobody could match them -- IBM was actually one-third cheaper than Amazon. It got beat because its products were severely lacking.
 
In the following video, Motley Fool tech analyst Eric Bleeker and Max Macaluso discuss IBM's difficult transition from being a hardware giant, not only into cloud computing but also in the ways the the tech world operates financially, which is basically not worried about making returns on invested capital or making returns to shareholders in the near term. How will IBM adapt against competitors who basically get free capital without having to worry about making money?
 

Are you ready for this $14.4 trillion revolution?
Have you ever dreamed of traveling back in time and telling your younger self to invest in Apple? Or to load up on Amazon.com at its IPO, and then just keep holding? We haven't mastered time travel, but there is a way to get out ahead of the next big thing. The secret is to find a small-cap "pure play" and then watch as the industry -- and your company -- enjoy those same explosive returns. Our team of equity analysts has identified one stock that's ready for stunning profits with the growth of a $14.4 trillion industry. You can't travel back in time, but you can set up your future. Click here for the whole story in our eye-opening report.

 

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2983151, ~/Articles/ArticleHandler.aspx, 11/27/2014 6:34:56 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement