Cloud Computing: IBM And HP Are Looking At Diversification, But Where Should You Invest?

Grazed from GuruFocus. Author: Editorial Staff.

Hardware giants like International Business Machines (IBM) and Hewlett-Packard (HPQ) are diversifying into more areas to propel growth given the slowing personal computer market. Cyber security and cloud computing are among the most talked-about markets in IT solutions growing at a rapid pace.

The products such as mobile communications, cloud computing, and security solutions are being focused upon by IBM since they are higher margin markets with higher growth products. Acquisitions and partnerships are considered as the ideal ways to step into such markets. IBM’s rock-solid cash position has enabled it to make a few acquisitions and its established brand image has enabled it to enter into agreements with leading players…

IBM acquired Xtify to broaden its portfolio in mobile communications software. The mobile payment transactions might exceed $235 billion as forecasted by Gartner. The bump in the number of mobile users resulted in the rise in transactions. The market is forecasted to be worth $998.5 billion by 2016 at a CAGR of 83.7% from 2012 to 2016…

Read more from the source @ http://www.gurufocus.com/news/256982/ibm-and-hp-are-looking-at-diversification-but-where-should-you-invest

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