Andrew Pollack's Blog

Technology, Family, Entertainment, Politics, and Random Noise

IBM has invented the time machine - and not in a good way

By Andrew Pollack on 07/20/2010 at 12:54 PM EDT

Steve Mills is now in charge of both hardware and software. According to The New York Times....

The management changes, announced in an e-mail message to I.B.M. employees, were intended to improve the company’s products and services, Mr. Palmisano wrote. For example, computer hardware and software are for the first time being placed under the oversight of one executive......Increasingly, Mr. Palmisano wrote, computer systems must be “designed and brought to market as tightly integrated” packages of hardware and software.


So, am I the only one totally confused by this? What hardware and software is that?

Certainly it isn't the PC and PC based server world -- unless they're planning to come out with the "PS/2 2.0" or some product directly competing with the entire Wintel world like Apple. The idea of selling a PC with its own software and hardware tied exclusively to it went out with the Tandy 2000 in 1982.

Certainly it isn't the networking and SAN businesses, because while there is software for that - it's already managed by the hardware team as what is essentially firmware and specialty OS stuff.

Are they now talking about specifically refocusing entirely on the Mainframe world? Are HP and Hitachi (is that still who competes there?) pushing them so hard as to make it worthwhile to put all of the software division under that group?

Is it just that Hardware and Software combined now have about the same revenue and budget as Services by itself?


There are  - loading -  comments....

re: IBM has invented the time machine - and not in a good wayBy Henning Heinz on 07/20/2010 at 01:26 PM EDT
IBM will probably still sell big iron in 20 years but it is not strategic
anymore. But for a company of this size you just cannot say that you are giving
up in that area (well you can but that would cause some heavy damage).
re: IBM has invented the time machine - and not in a good wayBy Bill Dorge on 07/20/2010 at 02:04 PM EDT
I'd probably start thinking appliance, kind of like IBM Cloudburst,
http://www-01.ibm.com/software/webservers/cloudburst/ . They have the tools,
products, and know how to take this farther than anyone in the market today,
just not sure Mills is the guy to pull it off though.
re: IBM has invented the time machine - and not in a good wayBy Gregg Eldred on 07/20/2010 at 02:06 PM EDT
The only "tightly integrated" hardware and software package that IBM sells is
Lotus Foundations, right?
re: IBM has invented the time machine - and not in a good wayBy Craig Wiseman on 07/20/2010 at 03:51 PM EDT
"sells"?
re: IBM has invented the time machine - and not in a good wayBy Nathan T. Freeman on 07/20/2010 at 02:22 PM EDT
Look at the numbers. Systems & Technology is in a free fall. 1H revenues for
2007-2010 are: 9622MM, 9431MM, 7083MM, 7370MM. IBM didn't report per division
Income in 2007, but 2008-2010 looks like: 546MM, 361MM, 51MM. That's down over
90% in two years.

So either the hope is that they can bring margins in hardware back up by
tightly bundling software (which is where most of the value comes from unless
you're talking about consumer devices anyway) or this is a way to consolidate
reporting and bring the reported margins back up.

Either way, it has to be done, or S&T is going to report a loss in 2011, and
that's something that IBM just doesn't do.
re: IBM has invented the time machine - and not in a good wayBy Andrew Pollack on 07/20/2010 at 02:27 PM EDT
Bingo. I think you've hit it dead on. I was saying in another venue, that
this is a bookkeeping change not a technology change. I don't follow the
numbers for their divisions enough to have made the specific call, but if not
you're right on, you're very close I think.
re: IBM has invented the time machine - and not in a good wayBy Stephan H. Wissel on 07/21/2010 at 08:19 AM EDT
Let us look at computers where the hardware and software are tightly integrated:
- Appliances (Firewall, Storage, Anti-Virus, databases etc.)
- Wifi Router
- TV Box
- SmartPhone
- iMac
- iPhone
-iPad

if you compare the growth rate of all these it looks intriguing.
Of course the question is: does that work for servers too. Seem both IBM and
Oracle think so.
re: IBM has invented the time machine - and not in a good wayBy Stephan H. Wissel on 07/21/2010 at 08:20 AM EDT
and Steve Mills has a track record of successful innovation, specifically in
Lotus software.
re: IBM has invented the time machine - and not in a good wayBy Andrew Pollack on 07/21/2010 at 10:51 AM EDT
Please tell me you're joking about Mills. You are, right?
re: IBM has invented the time machine - and not in a good wayBy Craig Wiseman on 07/21/2010 at 12:12 PM EDT
Innovation = change

Successful = he got promoted.
re: IBM has invented the time machine - and not in a good wayBy Jerry Carter on 07/21/2010 at 03:40 PM EDT
Don't for get the Amiga Computer and the Atari ST.
re: IBM has invented the time machine - and not in a good wayBy Lisa Duke on 07/22/2010 at 08:11 AM EDT
Well, if you have a bunch of sellers and partners who push boxes even though
the profit is in software, slap the software on the box and viola! problem
solved!


Other Recent Stories...

  1. 05/05/2016Is the growing social-sourced economy the modern back door into socialism?Is the growing social-sourced economy the modern back door into socialism? I read a really insightful post a couple of days ago that suggested the use of social network funding sites like “Go Fund Me” and “Kickstarter” have come about and gained popularity in part because the existing economy in no longer serving its purpose for anyone who isn’t already wealthy. Have the traditional ways to get new ventures funded become closed to all but a few who aren’t already connected to them and so onerous as to make ...... 
  2. 04/20/2016Want to be whitelisted? Here are some sensible rules for web site advertisingAn increasing number of websites are now detecting when users have ad-blocking enabled, and refuse to show content unless you "whitelist" their site (disable your ad-blocking for them). I think that is a fair decision on their part, it's how they pay for the site. However, if you want me (and many others) to white list your site, there are some rules you should follow. If you violate these rules, I won't whitelist your site, I'll just find content elsewhere. 1. The total space taken up by advertisements ...... 
  3. 12/30/2015Fantastic new series on Syfy called “The Expanse” – for people who love traditional science fiction[] “The Expanse” is a new science fiction series being broadcast onthe Syfy channelthis winter. It’s closely based on a series of books by author James S. A. Corey beginning with “Leviathan Wakes”. There are 5 books in the “Expanse” series so far. If you’re a fan of the novels you’ll appreciate how closely the books are followed.TIP: The first five episodes are already available on Syfy.com. If you’re having trouble getting into the characters and plot, use those to get up to speed.The worlds created for ...... 
  4. 10/20/2015My suggestion is to stay away from PayAnywhere(dot)com  
  5. 08/07/2015Here is one for you VMWARE gurus - particularly if you run ESXi without fancy drive arrays 
  6. 08/06/2015The Killer of Orphans (Orphan Documents) 
  7. 06/02/2015Homeopathic Marketing: Traveler on my Android is now calling itself VERSE. Allow me to translate that for the IBM Notes community... 
  8. 03/17/2015A review of British Airways Premium Economy Service – How to destroy customer goodwill all at once 
  9. 02/26/2015There's a bug in how @TextToTime() and @ToTime() process date strings related to international standards and browser settings. 
  10. 01/21/2015Delivering two new presentations at Developer Camp (EntwicklerCamp) 2015 in Germany 
Click here for more articles.....


pen icon Comment Entry
Subject
Your Name
Homepage
*Your Email
* Your email address is required, but not displayed.
 
Your thoughts....
 
Remember Me  

Please wait while your document is saved.