Could IBM Become the Next Microsoft?

International Business Machines (NYSE: IBM) has redefined itself primarily as a cloud company. After stagnating for years as an IT services company, it orchestrated a $34 billion takeover of Red Hat in 2019, and in 2021, spun off its managed infrastructure business into Kyndryl.

Microsoft (NASDAQ: MSFT) also transformed itself into a cloud company (in the 2010s), and in many respects, IBM's metamorphosis resembles that of Microsoft years ago. Moreover, the cloud business has changed significantly over the past decade.

These evolutionary changes for the two companies have some investors asking whether IBM is trying to make itself into the next Microsoft and, if it is, whether it can succeed in that effort.

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Source Fool.com