International Business Machines (IBM Quick QuoteIBM - Free Report) recently launched single frame and rack mount configurations of IBM z16 and IBM LinuxONE Rockhopper 4 to enhance data center’s productivity and support a dynamic IT ecosystem. With enhanced security capabilities, the single frame and rack mount configurations enable seamless deployment in new environments, significantly improving data center flexibility.

Enterprises in healthcare, financial services, transportation and all other industries are facing higher data flows in today's constantly evolving IT environment. As the number of transactions increases, systems experience a greater workload every day. The increasing workloads in data centers demand greater energy consumption. The instances of cyber-attack and data theft are also rising.

The newly-introduced configuration consists of confidential computing, centralized key management and quantum-safe cryptography, which reinforce the cyber defense mechanism and protect confidential and sensitive data of consumers related to bank accounts, digital assets and medical records. With enhanced security capabilities, the single frame and rack mount configurations enable seamless deployment in new environments, significantly improving data center flexibility.

As digital transformation accelerates worldwide, data centers intend to increase their ability to manage and support growing customer demand. However, this indicates exploitation of more natural resources to match this increasing demand which often have an adverse environmental impact. The modern IT ecosystem needs a solution that will balance the situation with energy-efficient business model and help to meet the growing demand. The IBM z16 blended with LinuxONE 4 fulfills these requirements as its sustainable design ensures a 75% reduction in power consumption and lowers space requirements by 67%. It also allows clients to deploy optimized AI solutions in a cloud-native environment and ensure cost efficiency through better resource utilization.

IBM has evolved as a provider of cloud and data platforms. Red Hat’s acquisition, in particular, has helped it strengthen its competitive position in the hybrid cloud market. With the Red Hat buyout, the company offers a Linux operating system — Red Hat Enterprise Linux — and a hybrid cloud platform — Red Hat OpenShift — that aids enterprises with digital transformation. The company provides advanced information technology solutions, computer systems, quantum computing and supercomputing solutions, enterprise software, storage systems and microelectronics
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It is poised to benefit from strong demand for hybrid cloud and AI, driving growth in Software and Consulting segments. The company’s growth is expected to be driven primarily by analytics, cloud computing, and security in the long haul. A combination of a better business mix, improving operating leverage through productivity gains and increased investment in growth opportunities will drive profitability.  IBM's research and development (R&D) initiatives set it apart. On an annual basis, the company invests around 7-8% in R&D to reap high-growth and high-value opportunities.

The stock has inched up 1.3% in the past year compared with the industry’s decline of 9.1%.

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IBM currently carries a Zacks Rank #2 (Buy).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arista Networks, Inc. (ANET Quick QuoteANET - Free Report) , sporting a Zacks Rank #1, delivered an earnings surprise of 14.17%, on average, in the trailing four quarters. Earnings estimates for ANET for the current year stand at $5.79 per share. Arista provides cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next-generation data center networks.

It continues to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. It is well-poised for growth in data-driven cloud networking business with proactive platforms and predictive operations. Arista has introduced network observability software, DANZ Monitoring Fabric (DMF), on its switching platforms for enterprise-wide traffic visibility and contextual insights.

Juniper Networks, Inc. (JNPR Quick QuoteJNPR - Free Report) , carrying a Zacks Rank #2, delivered an earnings surprise of 1.55%, on average, in the trailing four quarters. It is witnessing strong momentum across its core industry verticals and is confident of its long-term prospects. Investments in customer solutions and sales organizations have enabled the company to capitalize on the solid demand across end markets.

Juniper is a leading provider of networking solutions and communication devices. The company develops, designs and sells products that help build a network infrastructure for services and applications based on a single Internet protocol network worldwide. The company caters to the networking needs of enterprises, public sector organizations and service providers across the globe

Nokia Corporation (NOK Quick QuoteNOK - Free Report) , carrying a Zacks Rank #2, delivered an earnings surprise of 9.65%, on average, in the trailing four quarters. In the last reported quarter, it delivered an earnings surprise of 14.29%. Nokia has made significant progress on its three-phased journey of value creation. The company’s strategy includes Reset, Accelerate and Scale. Its focus on capital allocation and technology leadership is expected to help it grow profitably.

Nokia is on track to achieve sustainable, profitable growth and technology leadership. It aims to accelerate its product roadmaps and cost competitiveness through additional 5G investments. It has been developing its 5G portfolio, strengthening AirScale and advancing the capabilities of its ReefShark chipset.