International business machines (NYSE: IBM) waited too long to make a big bet on hybrid cloud computing. While the company was tinkering with this interface between public and private cloud, IBM was only really “all-in” with the decision in 2018 to take over Red Hat. Then Hewlett Packard Enterprise (NYSE: HPE), Microsoft (NASDAQ: MSFT), VMware, and a number of other technology names have already made their part of the market. Any hybrid cloud growth from here requires the acquisition of market share from other established providers.

Nonetheless, investors have a reason to be pleased with IBM’s stepped-up advance into the industry. You see, even a modest success with hybrid hardware results in tremendous incremental growth in software and services revenue.

One begets the other

While IBM is no longer just a hardware company, hardware is still an important part of corporate revenue. Its software and services are largely a means of …



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