Monday, November 3, 2014

Can IBM Compete In Cloud Computing


IBM's Big Stumble - Businessweek: "... Rometty’s nearly impossible task of reinventing IBM for the era of cloud computing while handcuffed by the “Roadmap.” IBM is 103 years old and has survived upheavals in the technology industry before—selling mainframes, then personal computers, then getting into the consulting game. Rometty will tell anyone who listens that the changes demanded of IBM today are as great as they’ve ever been. One question is whether IBM has the technical chops to compete with Amazon and others: After losing a lucrative CIA cloud project to the upstart, IBM had to acquire a small competitor, SoftLayer, to competently provide the services its customers are now demanding. The arrival of cheap cloud computing means that corporations don’t need IBM’s big, expensive mainframes. And even if IBM does catch up, the cloud might be such a thin-margined industry that it can’t sustain the profit margins IBM had been telling investors to expect. Until today...."

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