Every 20 years IBM goes through a transition, according to Ray Wang, the principal analyst, founder and chairman of Constellation Research. The company’s current transition revolves around shutting down hardware and focusing on software, as well as shedding old businesses and building new ones. In his live interview with theCUBE co-hosts John Furrier and Dave Vellante at IBM Insight 2014, Wang explained that companies like IBM and Microsoft Corp., although running profitable businesses, are “hammered by the streets because they are not going fast enough.” On the other hand, companies driving profits and growing extremely fast, yet are not profitable, are more interesting to investors. As companies are more interested in partnering to co-create and co-innovate the next big thing that does not yet exist, Wang said IBM has got to determine their future clients and biggest leads. The company needs to find “that niche of customers that want to do the co-creation, co-innovation with IBM.” In terms of investor interest, although most look at quarter-to-quarter results, Wang said, “If you want to go long, IBM is a good place to be.” “Software is hot,” Wang added, especially in conjunction with the cloud.