The competition between Microsoft (NASDAQ: MSFT) and International Business Machines (NYSE: IBM) is now a pairing of cloud titans. Microsoft elevated the head of its cloud division to CEO in 2014. IBM followed suit this past April.
Microsoft has worked for some years to redefine itself as a cloud company. Although IBM has recently made the same moves, it is years behind the software giant. This poses a significant question for investors in technology stocks -- do they choose the established business of Microsoft or a stake in IBM's still-developing cloud business?
Gartner Research predicts cloud revenue to grow worldwide by 17% in 2020, with double-digit growth continuing through at least 2022. This trend should bode well for both companies as they seek to attract the business of a fast-growing group of customers. The question investors must answer is which company will bring them the highest return?
Source Fool.com