International Business Machines Corp. (IBM) Becomes More Cloud-Agnostic With Softlayer Buy

Page 2 of 2

This is also expensive for the service provider. And this is another key advantage for IBM, because it has the necessary staff resources, and needs to pay those people what they’re worth.

It’s a long game International Business Machines Corp. (NYSE:IBM) is playing. Positive results won’t be achieved until the mass migration of these large organizations toward cloud begins in earnest. But IBM can now begin that sales task. Again, that’s something it does well.

Any cloud strategy has to play to your own strengths. A scaled staff of people, an unparalleled ability to handle complexity, and to hold the hands of skittish customers, these are all up International Business Machines Corp. (NYSE:IBM)’s street.

The Foolish are patient

Expect benefits from this to show up slowly, however. This won’t add to earnings until the fourth quarter at least. Which means you can expect to see the stock under pressure over the next several months.

That’s when you buy.

Dana Blankenhorn owns shares of International Business Machines (NYSE:IBM).. The Motley Fool owns shares of International Business Machines.

The article IBM Becomes More Cloud-Agnostic With Softlayer Buy originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2