IBM: Cheap Stock or Value Trap

International Business Machines Corporation (IBM) often referred to as “Big Blue” is one of the oldest and biggest information technology companies sell its products and services the world over. While it was the beneficiary of the growth in the use of technology by corporations from the 1960s to the 2010s, it is having some trouble in this new, distributed computing environment. Companies are now using specialized database solution provided by Oracle and others. They are no longer reliant on IBM hardware to run these applications. Companies have replaced the distributions of computing power the main frame to the desk top and now the server farms where data is being held as well. Business models are changing. There was a time when companies would run their own private networks. Now many of those processes and services are cheaper to outsource from companies who use cloud based systems. All of this has put pressure on Big Blue and they are adapting to that pressure. The questions (1) Are they doing enough. (2) Are they moving fast enough?

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