10-12-2015, 01:04 PM
I appreciate the article, Karim. Some interesting points. I think in defense of IBM, there are many more services there than just the cloud. I think Buffett pointed out that the cloud is not a zero sum gain, having *some* market share is just fine. IBM has a lot of infrastructure clout in institutions and government and I think a higher level of trust there too. For instance IBM is talking with the NY Fed about providing the infrastructure for a blockchain for money, like bitcoin.
IBM also has partnerships with Apple, Medtronic, JNJ and others. Watson of course, business analytics which they are pivoting to. So I am not too worried about IBM.
Cisco has exhibited all of the signs of being a healthy cash cow with recurring revenues, but the complete reliance on their current business model in the tech world has always given me pause and I have not yet pulled the trigger on CSCO for that reason. I was so close to buying at 13 a couple years ago, I think it was right before they initiated the dividend? Never pulled the trigger.
IBM also has partnerships with Apple, Medtronic, JNJ and others. Watson of course, business analytics which they are pivoting to. So I am not too worried about IBM.
Cisco has exhibited all of the signs of being a healthy cash cow with recurring revenues, but the complete reliance on their current business model in the tech world has always given me pause and I have not yet pulled the trigger on CSCO for that reason. I was so close to buying at 13 a couple years ago, I think it was right before they initiated the dividend? Never pulled the trigger.