IBM sells Intel server business, company is doomed

Zemanta Related Posts ThumbnailIBM today sold its Intel server business to Lenovo, yet another example of Big Blue eating its seed corn, effectively dooming the company for the sake of short-term earnings. It’s a good move for Lenovo and an act of desperation for IBM.

Wall Street analysts may see this as a good move but then Wall Street analysts typically aren’t that smart. They’ll characterize it as selling-off a low-margin server business (Intel-based servers) to concentrate on a higher-margin server business (Z-series and P-series big iron) but the truth is IBM has sold the future to invest in the past. Little servers are the future of big computing. IBM needs to be a major supplier […]

By |January 23rd, 2014|2014, Breaking News, Business, Companies, Computing, Technology|117 Comments
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Final 2014 prediction: the end of the PC as we knew it

cook-jobsWe’re generally a Macintosh shop here in Santa Rosa. I have Windows and Linux PCs, too, but most of the heavy lifting is done on Macs. Next Wednesday I’m expecting a delivery from B&H Photo (no tax and free shipping!) of four new iMacs plus some software totaling $5,407. I fully expect these to be the last personal computers I will ever buy.

How’s that for a 2014 prediction?

Moore’s Law doubles the performance of computers every couple of years and my old rule of thumb was that most people who make their living with computers are unwilling to be more than two generations behind, so that means no more than four years between new PCs. And […]

By |January 10th, 2014|2014, Business, Companies, Computing, Phones, Predictions, Software|122 Comments
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See you on the golf course, John, Cisco is in trouble

ballmerchambersLast week I began this series on large companies in turmoil by looking at Intel, which I saw trying to guarantee its future through enlightened acquisitions that actually emulated this week’s company — Cisco Systems. So if Cisco already knows how to assimilate other companies and technologies to stay ahead of the market, how can they have a problem? Cisco’s problem is their market is mature and being commoditized with all boats sinking. And this time there isn’t an obvious new idea to buy.

Cisco is a becoming a very expensive utility appliance.  The revenues streams at Cisco that are at risk:

–          Enterprise routers for T-1 services versus DOCSIS 3.1 and in the future 4G LTE-A

–          […]

By |December 4th, 2013|2013, Business, Companies, Internet|33 Comments
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How Big Data is destroying the U.S. healthcare system

denied-stampOne thing I find ironic in the current controversy over problems with the healthcare.gov insurance sign-up web site is that the people complaining don’t really mean what they are saying. Not only do they have have little to no context for their arguments, they don’t even want the improvements they are demanding. This is not to say nothing is wrong with the site, but few big web projects have perfectly smooth launches. From all the bitching and moaning in the press you’d think this experience is a rarity. But as those who regularly read this column know, more than half of big IT projects don’t work at all. So I’m not surprised that […]

By |October 26th, 2013|2013, Business, Economy, Government, Health|164 Comments
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Apple burnishes while we wait for another breakthrough

SteveJobs3Some readers have asked me for a post on the new Apple iPhones announced yesterday. I’ll get to that in time but prefer to do so when I actually have an iPhone 5S in my hands because I have a very specific column in mind. And no, it’s not the column you think it is. But this is still a good time to write something about Apple in general, which is how Cupertino appears to now stand at a crossroads.

There is a world of difference between Microsoft and Apple but one way they are similar is in facing a generational change. Another way they are similar is in having robust legacy businesses that both put […]

By |September 11th, 2013|2013, Business, Companies, Industry, Phones|86 Comments
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