New Mainframe Computer Strengthens IBM

Added by David Sandercock on October 17, 2010

International Business Machines (IBM) experienced a rise in its shares’ value when a new mainframe computer was introduced. The company’s expenditure could also have contributed to this increase.

According to analysts and investors, the rise in IBM’s shares was noted this week and there is expected to be a higher nudge from IT services.

Thomas Smith, Standard & Poor analyst, the rise and added that further rises are expected as software, hardware and services improve.

Investors have been attracted to IBM mostly because of its focus upon the IT services and software which have been more than profitable in the past decade. Now the global tech company waits to see how their new “System Z” will be received by users.

System Z is a mainframe computer able to run huge data amounts at the same time and process financial transactions much easier.

According to Smith, there was a 20 per cent decrease in revenues from hardware and the new mainframe computer is set to lower the decrease. He added that hardware such as servers often lead to demand in IT services and software purchases.

Even though Smith does not own IMB shares, he rated company shares with “strong buy” which is a very high ranking in his rating system.