International Business Machines Corp.’s share price down, to release new free Web-based e-mail service to confront Google Inc.

November 19, 2014 8:47 am

International Business Machines Corp. revealed its new service called IBM Verse, which comes as a rival of the companies in the e-mail market, including Google Inc. The new product of the U.S.-based IBM is to be offered to end clients, a quite unusual approach for the company since the sale of its personal-computer unit almost a decade ago.

The General Manager of the social solutions division of IBM, Jeff Schick, said in an interview, cited by Reuters: “We came at this from the perspective that this is about changing the game, not just incremental improvements in e-mail.”

As reported by The Tech Portal, Mr. Schick also explained that the strategy of providing a free introduction to the service’s basic version and then offering a version with more features to corporate users was a “very, very important dimension of what we wanted to do.” He added: “We wanted to open up the aperture.”

The e-mail service of the company is to provide the users with the opportunity to use cloud-based software, which will be free to both individuals and small businesses. IBM also plans to put its focus on commercial customers.

IBM Verse is a mixture of file sharing options, analytics tools and social-media features, which will allow its subscribers to get a better perspective of their users’ behaviour and preferences in order to predict interactions with their co-workers.

The launch of the company’s new e-mail service is part of the IBM’s strategy to concentrate on cloud computing and data analytics business. The U.S.-based company is slightly shifting its focus from the hardware services, which have long been the major source of income for IBM.

International Business Machines Corp. was down 1.38% to close at $161.89 per share yesterday, marking a one-year decrease of 12.24%. The company is valued at $162.46 billion. According to CNN Money, the 23 analysts offering 12-month price forecasts for International Business Machines Corp. have a median target of $171.00, with a high estimate of $198.00 and a low estimate of $125.00. The median estimate represents a +5.63% increase from the last price of $161.89.

Where to Trade

BinaryTribune is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action, Binary Options and Social Trading.

Related