Buffett's position is that IBM has succeeded in turnarounds throughout its 100+ year history. Also, their advantage is in the Public/Private hybrid cloud. Buffett also believes the cloud business is not a "Winner Take All" game.
Buffett also applauds what industry pundits have dubbed, IBM's "Financial engineering". IBM has financed share buybacks with debt. With interest rates and share prices at low-levels, he believes the buybacks are sound.
In my time, I remember when IBM jumped on the Linux and Java bandwagons with great success. I think most people respect the contributions they made with the Eclipse IDE for example.
It will be interesting to see what they do with Bluemix and AI. I still respect them as a technology company.