Microsoft drops to 3rd Place biggest Tech company, behind IBM

Mike Halsey MVP
Sep 30, 2011
Updated • Jun 25, 2018

It's not been a good year for Microsoft when it comes to their overall standing in the technology business space.  A couple of months ago Apple overtook the company as the number 1 international technology company in terms of value because of the frankly amazing work done by Steve Jobs and his team over the last decade in capturing technology markets and calling them their own.  Now the less surprising has happened in that IBM has overtaken Microsoft in value to force the Redmond giant down to the number 3 slot.

Bloomberg have reported that IBM's value yesterday reached $214 billion while Microsoft's fell slightly to $213.2 billion.  IBM has been steadily gaining on Microsoft in the last year by adding 22% to its overall value, while Microsoft's value has seen a drop of 8.8% in the same period.

This isn't at all surprising given the drive towards the cloud now for all technology companies and the servers required to get their presences there being supplied predominantly by only a few major firms, of which IBM has always been a leader.  We could probably see Fujitsu, HP and others significantly climb in value too in the next couple of years, again off the back of the move to the cloud.

Microsoft's business focuses predominantly on Windows, Windows Server and Office with other aspects of the company's products, namely their Bing search engine and their Xbox gaming division being propped up by revenue from the company's traditionally strong products.  With very few exceptions Microsoft have never made hardware and certainly haven't got into the server market.

This is the first time that IBM has topped Microsoft in value since 1996 and is now the fourth-largest company in the world by market value.  IBM sold their own PC division to a Chinese company in 2005 and HP also now look set to sell their own PC division to concentrate on the prospering server market.  IBM could clearly see which way the wind was blowing.  While the rest of the world believed that processing was coming down from servers onto the desktop, they stuck to their ground and were soon proved correct that processing would continue to be done on servers and, indeed this market would grow significantly.  In an interview with Bloomberg, Ted Schadler, an analyst with Forrester Research siad “They were early to recognize that computing was moving way beyond these boxes on our desks.”

Microsoft are still the world's largest software company but in 2000 were worth three times the value of IBM.  This shows just how much IBM's business has grown in that time, and the company has announced plans to grow their business even further by 2015.  Back in the summer of 2000, Microsoft was valued at $430 billion but dropped to $135 billion in 2009 at the height of the economic downturn.

Microsoft will continue to be a dominant player in the market but the rise of alternative operating systems from Google and Apple have proven that it's no longer all about the operating system you run, as I point out in an article today on our sister site Windows8News.  This move then does not mean that Microsoft won't still be a technology giant ten years from now.  They may still see this dominant place slip however and could be number five by the end of next year.

Microsoft drops to 3rd Place biggest Tech company, behind IBM
Article Name
Microsoft drops to 3rd Place biggest Tech company, behind IBM
After losing the coveted spot of the largest technology company to Apple, IBM has overtaken Microsoft in value to force the Redmond giant down to the number 3 slot.
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  1. Some Dude said on March 19, 2023 at 11:42 am

    Are these articles AI generated?

    Now the duplicates are more obvious.

    1. boris said on March 19, 2023 at 11:48 pm

      This is below AI generated crap. It is copy of Microsoft Help website article without any relevant supporting text. Anyway you can find this information on many pages.

  2. Paul(us) said on March 20, 2023 at 1:32 am

    Yes, but why post the exact same article under a different title twice on the same day (19 march 2023), by two different writers?
    1.) Excel Keyboard Shortcuts by Trevor Monteiro.
    2.) 70+ Excel Keyboard Shortcuts for Windows by Priyanka Monteiro

    Why oh why?

    1. Clairvaux said on September 6, 2023 at 11:30 am

      Yeah. Tell me more about “Priyanka Monteiro”. I’m dying to know. Indian-Portuguese bot ?

  3. John G. said on August 18, 2023 at 4:36 pm

    Probably they will announce that the taskbar will be placed at top, right or left, at your will.

    Special event by they is a special crap for us.

  4. yanta said on August 18, 2023 at 11:59 pm

    If it’s Microsoft, don’t buy it.
    Better brands at better prices elsewhere.

  5. John G. said on August 20, 2023 at 4:22 am

    All new articles have zero count comments. :S

  6. Anonymous said on September 5, 2023 at 7:48 am

    WTF? So, If I add one photo to 5 albums, will it count 5x on my storage?
    It does not make any sense… on google photos, we can add photo to multiple albums, and it does not generate any additional space usage

    I have O365 until end of this year, mostly for onedrive and probably will jump into google one

  7. St Albans Digital Printing Inc said on September 5, 2023 at 11:53 am

    Photo storage must be kept free because customers chose gadgets just for photos and photos only.

  8. Anonymous said on September 5, 2023 at 12:47 pm

    What a nonsense. Does it mean that albums are de facto folders with copies of our pictures?

    1. GG said on September 6, 2023 at 8:24 am

      Sounds exactly like the poor coding Microsoft is known for in non-critical areas i.e. non Windows Core/Office Core.

      I imagine a manager gave an employee the task to create the album feature with hardly any time so they just copied the folder feature with some cosmetic changes.

      And now that they discovered what poor management results in do they go back and do the album feature properly?

      Nope, just charge the customer twice.

      Sounds like a go-getter that needs to be promoted for increasing sales and managing underlings “efficiently”, said the next layer of middle management.

  9. d3x said on September 5, 2023 at 7:33 pm

    When will those comments get fixed? Was every editor here replaced by AI and no one even works on this site?

  10. Scroogled said on September 5, 2023 at 10:47 pm

    Instead of a software company, Microsoft is now a fraud company.

  11. ard said on September 7, 2023 at 4:59 pm

    For me this is proof that Microsoft has a back-door option into all accounts in their cloud.
    quote “…… as the MSA key allowed the hacker group access to virtually any cloud account at Microsoft…..”

    so this MSA key which is available to MS officers can give access to all accounts in MS cloud.This is the backdoor that MS has into the cloud accounts. Lucky I never got any relevant files of mine in their (MS) cloud.

  12. Andy Prough said on September 7, 2023 at 6:52 pm

    >”Now You: what is your theory?”

    That someone handed an employee a briefcase full of cash and the employee allowed them access to all their accounts and systems.

    Anything that requires 5-10 different coincidences to happen is highly unlikely. Occam’s razor.

  13. TelV said on September 8, 2023 at 12:04 pm

    Good reason to never login to your precious machine with a Microsoft a/c a.k.a. as the cloud.

  14. Anonymous said on September 18, 2023 at 1:23 pm

    The GAFAM are always very careless about our software automatically sending to them telemetry and crash dumps in our backs. It’s a reminder not to send them anything when it’s possible to opt out, and not to opt in, considering what they may contain. And there is irony in this carelessness biting them back, even if in that case they show that they are much more cautious when it’s their own data that is at stake.

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