International Business Machines Corporation (NYSE: IBM)

IBM has reinvented itself more times than any other tech company, and it's doing it again — this time around hybrid cloud and AI. Revenue is about $62 billion, with Red Hat (acquired for $34 billion in 2019) as the growth engine. The company spun off its managed infrastructure business as Kyndryl in 2021, shedding $19 billion in low-margin revenue. IBM's consulting arm remains one of the largest in the world.

Software (Red Hat, automation, data/AI) is the highest-margin segment and the strategic priority. Consulting provides implementation services and drives software adoption. Infrastructure (mainframes, storage) is the legacy cash cow that refuses to die — mainframes still process 87% of credit card transactions. The model is shifting from hardware-centric to recurring software and platform revenue.

IBM traces its roots to 1911 as the Computing-Tabulating-Recording Company, rebranded to IBM in 1924. The System/360 mainframe in 1964 was arguably the most important product in computing history. IBM's PC launched in 1981 but the company famously let Microsoft keep the DOS license. The 2019 Red Hat acquisition was the largest software deal in history at the time and defined the current strategy.