IBM is about to release earnings. Ponder this Bear Case Scenario:
IBM continues to gorge profits from large mainframe solutions. Mainframes are expensive and financially unattractive to even the largest customers. This is not a sustainable business model. Cloud computing is touted as the future. IBM is scrambling in this market just like everyone else. They have no lead or discernible advantage. Big Blue is not big.
IBM recently announced a partnership with Apple to attack Blackberry Enterprise Solutions. They probably tried to buy BlackBerry but could not pull it off.
Cloud Computing will turn main frame obsolete as everyone relies on cheap commodity servers and doesn’t care where they are.
Services does not seem to be the driver it once was. Just what services does IBM provide to corporate customers. Most people cannot come up with even one or two product lines.
George Gutowski writes from a caveat emptor perspective.