The recent turnaround of IBM can serve as an example of how even an established company can discover new opportunities with the right decisions at the right time. In many ways, IBM has been left behind in the last two decades as the technology sector transformed towards cloud- and software-based services. The general opinion among most individuals on Wall Street was that the company had lost its edge. The situation is much different nowadays. IBM has become a company with momentum because it has undertaken three brilliant steps that not only brought it back to life but also completely changed how it is perceived by investors regarding its future.
The initial reason behind the hybrid cloud is that the economics/costs are becoming more favorable for cloud services. The acquisition of Red Hat provided IBM with enhanced control over a multicloud situation. This is not a competition on par with giants such as Amazon or Microsoft, but instead in the field of helping businesses operate in a cross-system environment, and not be locked in. The focus is on stable, repeatable revenue, placing IBM in a territory where many large organizations are still growing.
The second driver is enterprise AI. Unlike consumer-specific tools, IBM is targeting companies that require dependable, confidential, and well-governed solutions. The approach is reflected in the WatsonX portfolio, where enterprises can confidently deploy AI to critical workflows. The fact that AI revenue is already increasing confirms the reality of a demand that is very permanent.
Quantum computing is the third and most grandiose pillar. The following years should bring the fault-tolerant system. Although this is more of a long-term wager, it has already altered the investor’s expectations. Breakthroughs in quantum may open markets that IBM has never reached before. Although commercialization may be time-consuming, IBM will be the first to commercialize on a serious scale.
The impact is noticeable. Revenue growth is back, stock has hit all-time highs, and we are confident in the company once again. Ahead, IBM is back in business as an industry leader in enterprise technology. Hybrid cloud and AI will continue to yield steady gains, but quantum computing presents the potential to enter a completely new chapter in computing.
