IBM and Big Iron

September 20, 2014

I read an interesting article about IBM. “IBM – A New Behemoth, or a Wounded Beast?” I noted that IBM is continuing to rely on Big Iron for some revenue. The write up reported:

IBM is pushing the mainframe as a Linux engine. Sales of the mainframe continue to be strong, and the majority of sales now include Linux capabilities. Although the mainframe is not an engine for everyone, it shows no sign of fading away, and will remain a core part of IBM’s future.

The argument in the article is less on IBM as either a behemoth or a beast. The article suggests that it has a flawed strategy with regard to Intel x86 systems.

IBM faces some significant growth hurdles, and the company has not formulated a winning strategy for its cloud solutions as Amazon, Google, and Microsoft take aim at IBM’s approach to enterprise cloud computing.

Furthermore, IBM is betting on Watson to generate billions in revenue. Is there a strategic vision behind Watson or the allied Cognos-SPSS-i2 lines of business.

What this article does is make very clear that IBM has some significant issues with regard to its corporate strategy. Both HP and IBM are increasingly vulnerable in multiple lines of business. Maybe enterprise apps will generate the types of revenue lift IBM enjoyed in its salad days? But then, maybe not?

Stephen E Arnold, September 20, 2014

Written by Stephen E. Arnold · Filed Under Business strategy, News

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Stephen E. Arnold monitors search, content processing, text mining and related topics from his high-tech nerve center in rural Kentucky. He tries to winnow the goose feathers from the giblets. He works with colleagues worldwide to make this Web log useful to those who want to go "beyond search". Contact him at sa [at] arnoldit.com. His Web site with additional information about search is arnoldit.com.