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 […]

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 […]