For decades, IBM was the premier tech company in the world. That was no longer the case a decade ago. A demonstration of its fall is a comparison of the market cap of America’s premier public tech corporations. IBM is far short of the leaders. (These 20 American companies have the worst reputations.)
IBM has a market cap of $125 billion. Meanwhile, Microsoft’s is $2.52 trillion. Alphabet, Amazon, and Nvidia are all over $1 trillion.
Its Prospects for a Rebound
IBM has tried to bill itself as a force in cloud computing. While it is in the business, its market share is small. If there is a hallmark of successful tech companies now, they either have a large footprint in cloud revenue or are part of the early leadership in artificial intelligence.
According to CRN, IBM’s global cloud market share is 3%, which has fallen recently. However, Google’s share is 11%, Microsoft’s is 21% and Amazon’s is 32%. CRN points out that “Amazon Web Services continues to be the dominant worldwide market share leader in cloud services, winning 32 percent share of the global market. AWS was a pioneer in cloud computing and has led the market for over a decade.”
In the most recent quarter, IBM’s revenue rose only 5% to $14.8 billion. Compare that to Microsoft’s revenue, which rose 13% in its most recent quarter to $56.5 billion. IBM’s net income was $1.7 billion, while Microsoft’s was $22.3 billion.
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