International Business Machines Corp. (NYSE:IBM) and Intel Corporation (NASDAQ:INTC) has been arch rivals in the server business for years. An article on Fool said that International Business Machines Corp. (NYSE:IBM) used to bear losses because of its closed business model due to which every company wishing to have International Business Machines Corp. (NYSE:IBM) technology was forced to buy only from the company. The losses forced IBM to open its gates and it launched a new OpenPOWER technology. This technology was open sourced and attracted hundreds of industry partners. Intel Corporation (NASDAQ:INTC) on the other hand, after getting defeat in the mobile wars is now heading towards the Asian markets. It has competitors everywhere. Qualcomm is not letting it breathe in the US and not a single mainstream latest mobile device is powered by Intel Corporation (NASDAQ:INTC).
In just one 2014, servers worth $23 billion were important to China. The source said that the US-based server manufacturers are facing difficulties after the rising distrust between Beijing and the US. But International Business Machines Corp. (NYSE:IBM) is still in a better position because of its increased relationship and open licensing business model in the country. Intel Corporation (NASDAQ:INTC) on the other hand does not let any third party to license its chips.
OpenPOWER architecture and technology is the single most important factor for International Business Machines Corp. (NYSE:IBM) and Intel Corporation (NASDAQ:INTC) must be worried about this fact. China’s server business is growing and the demand for International Business Machines Corp. (NYSE:IBM) is on the hike.
As of June 30, 2014, Ken Fisher’s Fisher Asset Management owns over 18 million shares in Intel Corporation (NASDAQ:INTC).
Suggested Articles:
