Marve2013 Posted October 4, 2016 Share Posted October 4, 2016 Hi All, Can someone pls explain to me why the markets have been cheering on MSFT and all the while going ho-hum about IBM? http://fortune.com/microsoft-fortune-500-cloud-computing/ I read the article and it's a good write-up about instilling a new culture, but other than that I didn't get the feeling there was any significant change. My guess is the markets were really fed up with Steve Balmer back then, and the new CEO Satya offered a refreshing change that so much value was unlocked just based upon a "we've gone beyond Balmer" kind of era. MSFT investing in cloud is great. And I get that it can't stand on Office forever. But even then, the level of margins and market share power in these two business are vastly different. It's like taking the cash from what was once a REALLY great business and plowing it into a potentiall, GOOD business. IBM sounds more interesting to me. Going for more selected hybrid plays, all the while building up an industry cluster practice. Making the AI really workable for clients. Is it fair to say IBM's AI (Watson) is further ahead than MSFT's AI? Hard to say. But IBM has certainly been making it more real and is signing up marquee names - Beijing (pollution) vs MSFT Chongqing, Tamil Nadu (Flood), Memorial Sloan, MIT AI Center, Big Banks, etc. So to me, IBM has an intrinsic moat - that's if it can gain futher traction on this AI business. But MSFT doesn't seem to have the same level of advantage. Amazon, MSFT, and others can all sign up as much cloud business as they want. But ultimately, they will still have to work with IBM inorder to all for clients to make use of that data on cloud ... is this a right asessment? (yes, they could build their own AI too, or work with google .. but then that's another assessment to make) Appreciate your comments. Thank you all. Link to comment Share on other sites More sharing options...
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!Register a new account
Already have an account? Sign in here.Sign In Now