IBM is a multinational computer technology, software, and services company, with approximately 380,000 employees worldwide/ Over 50 percent of IBM’s revenue comes from services, including strategic outsourcing, business-transformation outsourcing, business consulting, systems integration, and application management.
The IBM Software Group (SWG) develops, markets, and sells software, including Information Management (database and content management), Lotus (collaboration tools), Rational (application development), Tivoli (security management), and WebSphere (Web applications). The IBM Systems and Technology Group (STG) manufactures computer servers under the product brands of System x, ...view middle of the document...
The intersection is where the customers struggle the most and where we see opportunity to fill the holes.
One important aspect is that the compute architectures we bring to market are all interconnected. IBM need to keep the dialog going and make sure we add all of the other pieces. It's not as if customers have just one piece of the puzzle.
2. IBM means "higher value capabilities" in terms of software
The value of each component is highly dependent on the things that it sits on top of. IBM is not only focus in one area or your competitors can undermine company value from below or above and also navigate around what customers want---often times enterprises look to things that bring value to the line of business.. An application may solve be a profound technical challenge that the user has no interest in, or reason to know about. And it doesn't matter to the user but it does to the guys running the systems. Ultimately, customers will end up with greater or lesser quality of service dependent on how well they have determined the value of their stack and how well the components intersect.
In consideration of IBM's strength in R&D, how are acquisitions determined to be better than something you can build?
IBM can build anything, but we recognize the value of time. We literally can't build everything. Acquisitions can be a great way to augment what we can't do ourselves and we get technology, talent etc.
We generally simplify our decision process into three options: make, buy or partner. Depending on the integration with other components as well our time to market we assess the right approach for a given piece of software or hardware.
IBM and Cloud computing
IBM is a strong advocate of cloud computing. The company has performed a series of analyses to demonstrate the economic advantage of converting from conventional computing platforms to a cloud-computing service. Cloud computing does not require investing in a data processing facility or software to run in that facility. Users pay for computing services as they are consumed. Generally speaking, IBM has found that a "pay-as-you-go" model of computing is an...