Better Buy: Cisco Systems vs. IBM
These days, the tech industry isn't short of non-profitable, high-growth companies. But if you prefer to invest in solid free-cash-flow machines that should still be able to pay a generous dividend even if a recession materializes, tech giants Cisco Systems and International Business Machines are probably on your radar. But which one should you prioritize?
Over the last couple of decades, IBM has been selling hardware, software, and services (consultancy and outsourcing) that help enterprises run their computing infrastructure. However, after having survived technology revolutions, major recessions, and world wars, the company -- founded in 1911 -- must adapt its business to cloud computing.
As enterprises move some of their applications from their premises to the cloud, they've needed less hardware and software from IBM, which has also reduced the need for IBM's consultants to implement those solutions.
Source Fool.com
