How to fix IBM

IBMGiven IBM’s earnings miss last week and the impact it had on company shares I thought rather than just criticizing the company it might make better sense to consolidate my ideas for how to fix IBM. Here they are.

Early in his tenure as CEO, Sam Palmisano made changes that created IBM’s problems today. IBM customers are buying fewer products and services. Revenue has dropped each quarter for the past ten. Sam’s changes alienated IBM customers, many of whom are ending what has been in many cases a multi-decade relationship. No amount of earnings promises, no amount of financial engineering, will fix this problem.

IBM forgot the most important part of running a business. While shareholder value […]

By |October 27th, 2014|2014, Business, Companies, strategy|149 Comments
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Ginni comes to her senses, but too late for IBM?

Ginni_RomettyThis week, of all weeks, with IBM seemingly melting-down, you’d think I’d be writing about it and I have been, just not here. You can read two columns on IBM I published over at forbes.com, here and here. They are first day and second day analyses of IBM’s earnings announcement and sale of its chip division to GlobalFoundries. I could publish them here three days from now but by then nobody will care so instead I’ll just give you the links.

One thing I can do here is consider the way IBM CEO Ginni Rometty is spinning this story. She was all over the news […]

By |October 21st, 2014|2014, Business, Companies, strategy|106 Comments
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IBM’s Power8 servers are less than meets the eye

ibm-nvidiaTwo weeks ago IBM told the IT world it was taking on Intel in the battle for server chips with new Power8 processors incorporating advanced interconnection and GPU technology from NVIDIA. This followed an announcement earlier in the year that Google was using Power8 processors in some of its homemade servers. All this bodes well for IBM’s chip unit, right?

Not so fast.

Some product announcements are more real than others. While it’s true that IBM announced the imminent availability of its first servers equipped with optional Graphical Processing Units (GPUs), most of the other products announced are up to two years in the future. The real sizzle here is the NVlink and CAPi stuff that won’t really […]

By |October 12th, 2014|2014, cloud computing, Companies, Internet, Software, Technology|19 Comments
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Why I have grown to hate steamgames.com

steam-logoA son of mine, I’m not saying which one, borrowed from my desk a credit card and — quick like a bunny — bought over $200 worth of in-game weapons, tools, etc. for the Steam game platform from steamgames.com, which is owned by Valve Corp. Needless to say, the kid is busted, but the more important point for this column is how easily he for a time got away with his crime.

I would have thought that vendors like steamgames.com would not want children to be buying game stuff without the consent of their parents, yet they made it so easy — too easy.

When I use […]

By |October 7th, 2014|2014, Companies, Privacy and Security|110 Comments
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One way (maybe the only way) Yahoo can succeed

marissamayerAlibaba’s IPO has come and gone and with it Yahoo has lost the role of Alibaba proxy and its shares have begun to slide. Yahoo’s Wall Street honeymoon, if there ever was one, is over, leaving the company trying almost anything it can to avoid sliding into oblivion. Having covered Yahoo continuously since its founding 20 years ago it is clear Y! has little chance of managing its way out of this latest of many crises despite all the associated cash. But — if it will — Yahoo could invest its way to even greater success.

Yahoo CEO Marissa Mayer, thinking like Type A CEOs nearly always seem to think, wants to take some of the […]

By |September 30th, 2014|2014, Business, Companies, Entrepreneurship, Finance, Industry, Internet, strategy, Technology, Venture Capital|52 Comments
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