Apple proves that moats are for dummies

moatAs we all know, Apple last week announced two new iPhones, a payment service (ApplePay), and a line of Apple Watches that require iPhones to work. There’s not much I can say about these products that you can’t read somewhere else. They are bigger and better than what preceded them and — in the case of ApplePay and the AppleWatch — just different. They are all topnotch products that will stand out in the market and have good chances of being successful. So instead of writing about products we already know about, I’d like to write about moats to protect products from competition.

Moats, as you know, are defensive fortifications typically built to surround castles, making them […]

Refresh mobile hits the desktop

Screen Shot 2013-09-27 at 1.16.26 PMI’ve been away on a secret mission, which must remain secret for awhile longer.

Somehow this summer my so-called career had a revival of sorts. My earnest and heartfelt book, The Decline and Fall of IBM, is doing well and will shortly appear in a number of foreign language editions coming from actual book publishers. In a week or two I’ll publish here a general IBM update that’s mainly material to bring those foreign editions up to the present. The short version is it still sucks being Big Blue.

But wait, there’s more! Suddenly I have four (four!) television projects in the works, two of them literally back […]

The Fed suckered IBM into a failing cloud strategy?

Ginni_RomettyEconomist David Stockman, who is probably best known for being President Reagan’s budget director back in the era of voodoo economics, has been particularly outspoken about IBM as a poster child for bad policy on the part of the U.S. Federal Reserve. How this would be isn’t immediately obvious but I think is worth exploring because IBM is far from the only company so afflicted. There’s an important effect here to be understood about corporate motivations and their consequences.

So I’ll begin with a story. Almost 40 years ago there was a study I worked on at Stanford’s Institute for Communication Research having to do with helping farmers in Kentucky be […]

IBM and Apple just not that big a deal

apple-ibmGiven that I used to work for Apple and have lately been quite critical of IBM, readers are wondering what I think of Tuesday’s announcement of an iOS partnership of sorts between Apple and IBM. I think it makes good sense for both companies but isn’t a slam dunk for either.

There are three aspects to this deal — hardware, apps, and cloud services. For Apple the deal presents primarily a new distribution channel for iPhones and iPads. Apple can always use new channels, especially if they hold inventory and support customers who aren’t price-sensitive. Apple’s primary goal is to simply get more devices inside Big Business and this is a good way […]

IBM back in the USSR?

backintheUSSRMy book, The Decline and Fall of IBM, is now available in paperback, on the iPad and Nook, as well as on the Kindle. A dozen other platforms plus an audio book will be available shortly, but these are the big ones.

Over the weekend I received a very insightful message about the book from reader Steve Jenkins in Australia, where IBM is showing the same behavior problems as everywhere else. Steve has an insight into Big Blue that I wish I had thought to include in the book because I believe he is absolutely correct.

“Finished your e-book, but skimmed the blog comments,” wrote […]