IBM Boots Microsoft Out Of #2 Tech Spot

It hasn’t been the best 12 months for Microsoft, first Apple, Inc. surpasses them as the world’s “most valuable” tech company and now former #1 IBM has taken away their #2 ranking.

According to market value IBM has reached $214 billion while Microsoft fell to $213.2 billion. The valuation difference marks the first time since 1996 that IBM is considered more valuable than Microsoft.

According to analyst’s the movement shows that the industry has begun to shift away from personal computing, a major chunk of Microsoft’s focus. IBM got out of the PC business six years ago and now focuses mostly on software and services for corporations and government entities.

Apple according to the report is still the most valuable tech company in the world thanks to their iPhones, iPads and iPods along with a strengthening desktop and laptop market.

In the meantime Microsoft has failed to offer any real penetration in the Smartphone market or cloud computing sectors, both seen as critical as users move away from traditional computing to a more “connected” environment. Even Google has recognized the need to reinvent the traditional operating system through their Google Chrome OS.

Microsoft in recent months has begun to focus much of their effort on what is expected to be a very tablet friendly Windows 8 operating system that comes complete with touch friendly functions and a user interface that more closely resembles offerings from Apple’s iOS and Google’s Android systems.

Do you think Microsoft can regain their footing and once again begin offering consumers the type of products they want and need?