This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

IBM, Microsoft Dive Deep Into Clouds

This is due, says IBM, to its efforts building network, application and data security into its cloud offerings, as well as ensuring tight security at its data centers running cloud services. Companies using IBM's cloud offerings include American Airlines (AMR), 7-Eleven, and vehicle history company Carfax, said Telford. "When you see these names, it gives you a pretty good feeling that this is becoming mainstream," he added.

Whether or not that's true, the reality is that a number of corporate giants are finally deploying clouds in a big way. Microsoft recently announced enhancements for its Azure corporate cloud, which is being used by a host of companies to develop applications, including T-Mobile USA, Xerox (XRX) and Pixar.

Dell (DELL - Get Report) also talked cloud details Thursday, announcing a $1 billion investment in new data centers and cloud services. The computer maker will also partner with Microsoft to help customers quickly deploy and manage private clouds.

Laura DiDio, principal analyst at ITIC, estimates that between 15% and 20% of businesses have either deployed a cloud or tested one. "Up to this point, I would say that about a third of companies are considering a cloud deployment," she said.

IBM, which sees cloudy investments as a way to boost its high-margin services business, has been one of the technology's most vociferous -- and early -- advocates. Big Blue launched its Blue Cloud strategy in 2007. IBM hopes that cloud deployment will also drive demand for the company's servers and software.

IBM CEO Sam Palmisano recently said that he expects his firm to generate $7 billion in cloud-related revenue by 2015.

At midday Thursday, IBM shares were dipping 18 cents to $163.86, Microsoft's were down 12 cents to $26.03 and Dell's were somewhat flat at $14.75. Tech stocks seemed to be following the broader market trend, which saw shares dropping on news of another earthquake in Japan.

--Written by James Rogers in New York.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DELL $0.00 0.00%
IBM $160.50 0.00%
HPQ $31.16 0.00%
MSFT $40.66 0.00%
AAPL $124.43 0.00%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs