IBM Has Greater Market Value than Microsoft

By

IBM has surpassed Microsoft to become the second most valuable technology company in the U.S., ending a 15-year reign for the software giant.

At the close of business on Friday, IBM had a market valuation of $207.52 billion. That topped Microsoft’s market cap of $206.52 billion. The last time IBM was worth more than Microsoft was in April of 1996, when the PC maker had a market value of $63.3 billion.

Three years later, Microsoft’s value more than doubled that of IBM when it hit a high of $612.5 billion. However, the Armonk, New York-based tech company has steadily made up ground over the last decade. IBM shares have increased by 45 percent over the last 10 years while Microsoft’s stock price has remained relatively flat, according to GeekWire.

Friday’s news comes about a year after Apple jumped Microsoft to become the most valuable technology company in the nation. Apple has since pulled away from the other two companies. The iPhone maker currently boasts a $308 billion market cap, which is almost $100 billion higher than it was last year when Apple leapfrogged Microsoft. 

It is unclear how long IBM can hold off Microsoft for the second spot; the technology rivals may flip positions considerably over the upcoming months. Washington-based Microsoft is still far more profitable than IBM, even though the PC maker is technically more valuable at the moment.

Microsoft reported a net income of $18.7 billion on $62 billion in revenue in 2010. In contrast, IBM posted a profit of $14.8 billion on $99 billion in sales during the same period. Microsoft’s ability to consistently generate profits stems, in part, from the dominance of its suite of Office software products.

In a recent Forrester poll, only 3 percent of IT decision makers said that they are actively implementing a Web-based alternative to Microsoft Office.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2011, taking place Sept. 13-15, 2011, in Austin, Texas. ITEXPO offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.




Beecher Tuttle is a TechZone360 contributor. He has extensive experience writing and editing for print publications and online news websites. He has specialized in a variety of industries, including health care technology, politics and education. To read more of his articles, please visit his columnist page.

Edited by Jennifer Russell

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

SEPTA Puts ZeroEyes on Public Gun Safety

By: Greg Tavarez    11/28/2022

SEPTA looked to ZeroEyes to start a pilot program designed to reduce the likelihood of gun-related violence on train platforms.

Read More

Brand Interaction in Metaverse? Consumers Express Excitement

By: Greg Tavarez    11/25/2022

Almost three-fourths of consumers believe brand interactions in the metaverse are in a position to replace brand interactions in the real-world, or at…

Read More

WB Trading Review Guide To Top Tech For Trading Success

By: Contributing Writer    11/23/2022

There are many different types of technology that you can use when it comes to trading investments. This WB Trading review will discuss some of the to…

Read More

United (Fungi) Front: Industry Leaders Join Forces to Advance Sustainable Protein

By: Matthew Vulpis    11/18/2022

Mush Foods teamed up with several fungi fermentation companies from abroad to form a new international trade association: The Fungi Protein Associatio…

Read More

What Is Banking CRM and How Can It Help You?

By: Contributing Writer    11/15/2022

When most people think about CRM, they think about sales and marketing. But CRM banking is a powerful tool that can help banks and credit unions impro…

Read More