Ten-percent growth in software is a very good number. That's the kind of thing we want to see. That's where [Gerstner is] getting leverage. That's where he's cementing the future of the company.

Based on IBM's overall strong market position in services, software and components, and the outlook for more favorable growth, we believe the shares deserve at least a market multiple and possibly a slight premium.

The software market remains highly competitive and our fourth quarter results were mixed by geography. We saw double-digit growth in the Americas, where we believe we gained market share in both the fourth quarter and full year. This was partially offset by weaker results in Europe.

Microsoft is very good at momentum marketing. It can turn reports of strong growth in revenues, software licenses shipments, or clients being supported into a message that Windows NT is becoming the de facto standard.

[On-demand] is the type of disruptive innovation that has re-energized the single-digit growth software industry and provided a new method for obtaining the type of software that departments of large organizations, as well as small and medium-sized businesses, previously may not have been able to purchase due to cost or lack of I.T. resources.

There's no smoking gun, no deliberate malfeasance. That's going to be a benefit to the stock from the veil being lifted, but it's a one-time thing.