Part 8/10:
IBM's recent stock performance has been buoyed by impressive growth across its business segments. The software division has demonstrated remarkable strength, fueled by a subscription-based business model that promises predictable revenue streams. The hybrid cloud, which supports approximately 70% of the world's corporate transactions, remains a significant growth driver while consulting services continue to expand IBM's capabilities.
Competing against legacy chip makers, IBM's business model facilitates higher margins by prioritizing software and service offerings over hardware manufacturing. The company's strategy of owning the entire technology stack—from hardware to software—has positioned it well in an increasingly cloud-centric world.