Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • PC Hardware

    Leadership at IBM

    By
    eWEEK EDITORS
    -
    February 11, 2002
    Share
    Facebook
    Twitter
    Linkedin

      Turnaround artists get all the credit—when they succeed. So when Louis Gerstner rides off into the Westchester sunset for good later this year, hell get the thanks for saving and then turning around one of the worlds great companies, IBM. But the near-death experience was a decade ago. Where is IBM now, and where is it going? The answers will have to come from new CEO Samuel Palmisano.

      In initial comments, Palmisano said all the right things about IBM already being on the right track. But, in fact, “steady as she goes” wont be good enough to ensure either growth or even a merely healthy company in, say, five years. As an insider taking over the company at a time of relative prosperity, his challenge will be to avoid stagnation.

      Here are our suggestions:

      First, see that the strongest business, IBM Global Services, stays that way. IGS builds on a traditional IBM strength: developing and maintaining customer relationships. Although IBM used to promote only its own products, IGS in the Gerstner reign took seriously a vendor- agnostic attitude toward products and services and has succeeded handsomely, in the process becoming a reseller of some of IBMs largest competitors.

      The temptation will be to allow continued prosperity in IGS to mask problems elsewhere. Top management decided to get out of desktop manufacturing recently. It doesnt take a clairvoyant to see that Palmisano may be faced with similar calls down the road: the decisions to get better at—or get out of—the hardware and software business. It may make sense to spin off a division. We suggest that Palmisano leave his options open here.

      IBM should also continue down the path of open systems. Theres no doubt that embracing Java and Linux as open technologies has been paying dividends for IBM: The company has clearly learned that even such technically sound products as Token-Ring, Micro Channel and OS/2 cannot compete if burdened with even the appearance of proprietary intentions.

      Finally, it wont do to rely on financial manipulation such as stock buybacks to boost the companys performance. Many observers believe that Gerstner did about as much as can be done in this area anyway. With few additional gains possible, Palmisano will have to force IBM to make money the old-fashioned way: by earning it delivering real productivity gains to customers.

      eWEEK EDITORS
      eWeek editors publish top thought leaders and leading experts in emerging technology across a wide variety of Enterprise B2B sectors. Our focus is providing actionable information for today’s technology decision makers.

      MOST POPULAR ARTICLES

      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×