It has not all been plain sailing, though. The Baltimore native has come under fire for his cost-cutting efforts, which have involved layoffs and shifting jobs to lower-cost parts of the world such as India.
"It's part of many a successful company," said Broadpoint AmTech's Marshall. "The sad state of affairs is that you're not going to have an optimal cost structure if you're running everything from the U.S."
IBM, which competes with Hewlett-Packard (HPQ - Get Report), Sun Microsystems (JAVA) and Microsoft, raised its dividend this year, although Marshall feels that some of its competitors may offer more upside to investors.
Companies like EMC (EMC - Get Report), Brocade (BRCD - Get Report) and NetApp (NTAP) are worth a look, according to the analyst. "I think there's more opportunities for finding growth at more attractive valuations than IBM," he said.However, Palmisano is laying the groundwork for future growth. Although he is rarely seen on IBM's earnings calls, Palmisano is hard at work elsewhere, recently throwing his weight behind President Obama's health care IT agenda. "I think he likes