salesforce.com, inc. (CRM), International Business Machines Corp. (IBM): Heart of Cloud Moves to Applications

Moving up the Stack

What is most clear about the new TalkinCloud list is that cloud technology continues to be dominated by third parties, essentially public clouds or public cloud customers, which are providing very specific applications to defined markets. The private cloud that companies like International Business Machines Corp. (NYSE:IBM) have been depending on for growth, in which companies move their existing applications to cloud platforms, has not yet materialized.

This game has much further to go. It will play out throughout the decade. Right now, the higher up in the stack you are – and applications are at the top – the more cash you can generate. But the profits are still to come.

I still have shares in International Business Machines Corp. (NYSE:IBM), and I haven’t invested in any other cloud company. But I’m a conservative investor. If you’re more willing to take a chance, consider salesforce.com, inc. (NYSE:CRM).

The article Heart of Cloud Moves to Applications originally appeared on Fool.com and is written by Dana Blankenhorn.

Dana Blankenhorn owns shares of International Business Machines (NYSE:IBM).. The Motley Fool recommends Salesforce.com. The Motley Fool owns shares of International Business Machines. Dana is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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