NEW YORK (TheStreet) -- Shares of International Business Machines (IBM) are slightly lower at $161.75 in pre-market trade after it was reported that the IT company signed a 10-year, multi-billion dollar deal to provide computer infrastructure services to Dutch bank ABN Amro running on its cloud systems, IBM said today, according to Reuters.
The deal comes as the U.S. company is trying to gain momentum in the market for Internet-delivered services, known as cloud computing. IBM will provide fully managed services for mainframe computers, servers, storage and end-user computing as well as a help desk and other technical support. IBM did not disclose financial details of the deal.
Last month, IBM said it had won a seven year outsourcing contract from Germany's Lufthansa (DLAKY) worth $1.25 billion that will see the U.S. company take over the airline's information technology infrastructure services division and staff, Reuters noted.
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TheStreet Ratings team rates INTL BUSINESS MACHINES CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTL BUSINESS MACHINES CORP (IBM) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and a generally disappointing performance in the stock itself."