"Increased cloud adoption will likely benefit Amazon the most, as it’s the undisputed leader in the overall cloud space. IBM will likely be the worst hit by the fall in server demand, as it’s one of the leading players in the server space. This leadership is a big reason why IBM’s Hardware segment failed to grow in its most recent quarter."
Divestitures imminent for IBM Systems, no question.
http://marketrealist.com/2017/06/did-competition-from-amazon-urge-buffett-to-sell-stake-in-ibm/
He immediately moved and parked money in MSFT. That tells you a story. I do not blame him, 6 years ago, I'd put money on IBM too, I'd actually short MSFT as they were not getting the Cloud and they were not getting mobile as well. The valuation models associated with Amazon and Google freaked him out, so that was not an option. So, he went after what he thought was a safe(er) bet - things did not pan out, and he sees MSFT as a limited monopoly perfectly positioned to turn into a Cloud Juggernaut - hats off on that one, my hunch is that in 5 years MSFT will be #1 in the cloud - yes, the early adopters went and married Amazon, but now you have pretty much every single company that follows in line to do Office 365, and once they get you there you are pulled into their ecosystem again - kind of forever...