Cloud software already became vital for corporations that were in need of sharing and accessing data in an efficient, cheap and cooperative manner. The change in demands posed a struggle for hardware companies to shift into a software and cloud-based corporation.
However, International Business Machines Corp seemed to have no problems at all regarding the matter. Last quarter, IBM reported about its growth that signified the company's push to remain competitive. Its investments in softwares and cloud computing outdid analyst estimates with US$3.91 profit each share. IBM also projected an increase in its share's price to US$16.90 each share for the year, a 1.6% jump year on year.
IBM's 3.6 billion expenditures in share buybacks including its reduction of jobs and costs in the shrinking market of hardware and a US$1 billion-worth restructuring proved to be a success for the company. The dividends of IBM climbed to US$0.95 each share last quarter, up from 2010's U$0.55 each share. With a forward P/E of 10.7 and a P/B of 12, analysts said that IBM represented a cheap buy that could offer a room for growth.
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