IBM

Enterprise AI Wave

IBM Case Study (December 2015 – February 2016)

Primary Essay

Late January 2016 essay on the Cyclefund Strategic Positioning Framework for the IBM Cognitive Cloud Service Stack for 2016 entitled, “IBM is Best Positioned to Lead the Enterprise AI Wave"

Related Essays

Mid-January 2016 essay on the Cyclefund Strategic Investment Framework for the IBM Cognitive Cloud Service Architecture for 2016 entitled, “Cognitive Cloud Taps Consumer, Things, and Enterprise Clouds”

Early January 2016 essay on the Cyclefund Strategic Innovation Framework for the IBM Cloud-AI Wave for 2016 and Beyond entitled, “Artificial Intelligence Cloud”

Mid-December 2015 essay on the Cyclefund Value Chain Framework for the IBM Global Value Chain System for the Cognitive Era entitled, “The New Era of Cognitive Things”

Big-Picture Frameworks

Cyclefund Analysis of IBM Structure and Financial Performance FY 2016 Q1

Key Insights from the Late January 2016 Essay on IBM

As of this writing in mid-January of 2016, global equity markets are experiencing unprecedented declines, with stocks of many leading technology companies plummeting ten to twenty percent during the first two weeks of the year.

IBM was clearly among the decliners. While beating expectations for top and bottom line performance, the company issued substantially weaker earnings guidance than analysts expected, sending its shares below $120 for the first time since the fourth quarter of 2009.

We believe that the mass exodus from IBM shares over the past two and one-half years by discouraged investors represents one of the best large-capitalization buying opportunities since Apple in mid-2013 and Google in early 2015, and we shall articulate the reasons for our view in the next several sections.