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While making a bullish call on EMC, Peter Misek offers a fairly cautious take on IBM. Though...

While making a bullish call on EMC, Peter Misek offers a fairly cautious take on IBM. Though impressed with Big Blue's cloud strategy and software/services arsenal, Misek argues its services business "has lackluster prospects" due to macro trends and cloud adoption. He also thinks IBM's weak storage hand could force it to "pay up significantly" for a large storage firm such as NetApp (NTAP). Misek believes NetApp will lose NAS storage share to EMC's Isilon, but might draw M&A interest from IBM, Cisco, or Oracle.
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  • mr_dinky_dot_bomb
    , contributor
    Comments (387) | Send Message
    If IBM had to bid aggressively bid over market for a public company to add to storage offerings then the good news is that some other shareholders will get rewarded and IBM becomes a more empowered competitor. IBM recently sold 10 year bonds at par with a 1.875% coupon. If IBM, or anyone else, sees significant value to technology then current dollars are going to be spent as there are plenty of them available at cheap rates. There is of course the risk of overpaying if a competitive bidding situation develops, like the DELL v HPQ battles. But IBM has not been caught up in any momentum to be a top bidder, having walked away from its preliminary deal for JAVA, the old Sun Microsystems, some may be leery of topping an IBM bid as ORCL did. Of course that would apply only if an IBM bid were seen as fair.


    IBM wants to retain customers and get into data centers like everyone else. The Pure Systems approach has been offered to simplify management of increasingly complex software in environments like Knight Capital and other high volume, mission critical applications. I think it will gain traction. With this kind of simplicity you know who is responsible for what.

    21 Sep 2012, 01:25 PM Reply Like
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