IBM: Becoming More Open or Aggressive in a Search for Revenue

August 17, 2013

You may find “IBM Opens Up Power Chip Design, Partners with Google” suggestive. The notion of “opens up” and “partners with Google” strike me as interesting if not oxymoronic. Here’s the quote I noted:

IBM is opening its Power architecture at a time when the business has been struggling. Its Power division reported a 25 percent decline in revenue last quarter, while the broader Systems and Technology Group saw revenue decline 12 percent.Against that backdrop, IBM is making some of its employees take a mandatory furlough at the end of August, an IBM spokesman confirmed Tuesday. The furlough affects workers in the STG group and its Integrated Supply Chain division, which handles areas like procurement and logistics. The employees will receive an equivalent of one-third pay, while executives will not be paid for that week, IBM said. It declined to say how many workers are affected.

Hardware sales once were the annuity type of revenue described by bow tied business school professors. Today hardware is a little different, sort of like turkey with hoisin sauce.

Are IBM and Google “open.” Aren’t large information technology companies interested in cultivating the plants in a walled garden?

Stephen E Arnold, August 17, 2013

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