In a world where technological advancement and success of one organization is a big blow to another, it is surprising to know that two titans from these countless clashes operate under the same mantra. IBM and Apple, the planet’s leading software companies may seem to be at the opposite end in a magnetic chaos, but follows a comparable business model in reality.  An analysis, done by David B. Yoffie at the Harvard Business School, as outlined by The New York Times, offers insight to the similar paths IBM and Apple have taken.

Last quarter, Apple wowed the world as it surpasses IBM in profits, making room for an interesting look at their business structures, plans for growth and current appeal. IBM has been one of the strongest existing software organizations in the world. In fact, it’s financial report for the 3^rd quarter of 2010 shows that the company has just registered its 31^st consecutive higher earnings (compared to previous quarters). On the other hand, Apple with its iPhone, iStore and iTunes is on a roll with concentration on consumer products.

And how in the world did these two meet? Decades ago, IBM realized that personal computers were no longer their strong point. With this, they delved into cloud. Today, apple is seen to end up deep in the cloud infrastructure, as application software and the personal cloud will become a natural by-product of the consumer experience with Apple products. In summary, the two companies have built a money-making business with several recurring revenue, based on service contracts and software licenses, and to attract industry partners and software developers to use its technology.

“Each company has created an ecosystem of partners and developers around its core products. And both depend on ongoing innovation.” Mr. David Yoffie, a professor and analyst at the Harvard Business School related as he compares the business model of IBM and Apple.

The difference between Apple and IBM lies on their strategy. IBM invests almost $6 billion in their laboratories to focus on inventions. “Sure, it’s marketing, but it’s also a big idea that explains the company’s mission to the world and to its employees,” says John Kao, an innovation consultant to governments and business noted on IBM’s “Smarter Planet” campaign.

Apple, on the other end of the rainbow is more focused on innovation with the use of “behavioral science”—of its users. The company is seen to tie up with other organizations to co-invent a product and develop something out of a market demand.