IBM can turnaround its fate
IBM is labeled as “Big Blue” which is considered as one of the biggest technology giants in the IT world. The International Business Machines lies in the Information Technology sector which is further classified into five types such as Global Technology Services, System, Software, Global Business Services, and Technology. The company provides its services to the clients in more than 170 countries. Recently, the company is concerned about their generated revenues and results over the time. Shares of the company have faced a huge downfall and it is losing the track of its shareholders and investors. Oracle and Microsoft are in much better position and trading 4 to 5 times expected revenue for FY2014. However, despite of losing the trust and hold of its investors, analysts believe that the company can turn around massively which will get the hold of its investors and shareholders again.
IBM – dominant in the IT world
Apart from the above five mentioned segments of IBM, people ignore the fact that the company is successful in the Application Infrastructure and Middleware Software (AIM). The company is a dominant leader when it comes to infrastructure market as well as the middleware market. IBM has double shares in comparison to its competitor Oracle, who are ranked second in the market in terms of market shares.
AIM software generating revenues in millions as a global vendor
The major AIM products of the company which includes Websphere, information management and Tivoli etc. posted $3.7 billion revenue in the fiscal year of 2013. A 4% growth has been measured by this sector in comparison of 2% by the software division of the company. Analysts say that AIM charges about 56% of IBM stock price. However, recently the IBM stock quote has decreased by 0.08% bringing the IBM stock price down to $186.22. It is believed that the revenue of the company’s middleware products will hit the $25 billion mark by 2020.
The cloud developed by IBM is the second fastest cloud in the IT world as well as the third largest. It is only behind of their competitors, Microsoft. It is estimated that billions of dollars have been spent by the company in order to acquire the access of companies which include Trusteer, Sterling Commerce, Softlayer etc. The business of IBM grew by 69% in the FY2013 and a further increase of 25% is predicted by 2020. Hence, revenue will be around $16.8 million in 2020.
IBM is considered as a very strong and competitive market in the IT world despite of facing a few troubles in the recent years. The company has generated high revenues and it has shown high growth in several areas such as cloud, AIM etc. Regardless of losing the hold of shareholders, the company can turn around and can counteract in the decline occurring in other segments as well. Hence, the future is safe and the company can record a healthy growth in the near future.