The Age of IT Interoperability Continues to Take a Toll on IBM’s Economic Moat
IBM still brings the “big” to its moniker Big Blue. IBM is one of the world’s largest IT services companies, the dominant provider of mainframes and a prominent player in the public cloud, data management systems, and other software products, like middleware and integration software. While IBM has tried to refresh its diverse offerings, we think IBM’s moat is weakening as the cloud transition chips away at IBM’s competitive advantage associated with customer switching costs.