I'll hold my own feet to the fire - my last article was overly optimistic on IBM (NYSE:IBM).
IBM is a company that has managed to reduce its dependency on hardware sales and ramp up its AI and cloud offerings - something which I had commended the company for previously. However, my prior analysis had presented the company as building a highly sophisticated cloud infrastructure that would put the company at a significant advantage to its peers.
In reality, IBM may be ramping up its cloud offerings, but its big bet remains with Watson. While IBM has managed to make advances in the area of cloud, the company has not been able to achieve the success enjoyed by competitors such as Amazon (NASDAQ:AMZN) or Microsoft (NASDAQ:MSFT). The server capacity of AWS far exceeds that of its rivals including IBM, while Microsoft Azure has been much more successful commercially due to Microsoft's subscription model allowing for more attractive price offerings and integration with other Microsoft products.
