Feeds

New IBM boss describes $10bn ‘gamble’

Bold but not risky. Allegedly.

  • alert
  • submit to reddit

High performance access to file storage

ComputerWire: IT Industry Intelligence

Sam Palmisano, president and chief executive of IBM Corp used his first speech as the company's chief executive to highlight the company's vision of "on-demand" computing.

Palmisano, who is set to add the mantle of chairman to his business card next year when he takes over from current incumbent Lou Gerstner, addressed his fellow 350,000 "IBMers" plus some of the company's largest clients at New York's Natural History Museum.

The speech did not exactly cover any new ground for IBM. It has been touting its ability to deliver computing power, storage and applications as a utility service for the last 12 months, having trumpeted recent "on-demand computing" contract wins with American Express, Saks Department Stores and ABN AMRO.

However, Palmisano claimed that IBM has so far invested $10bn in gearing its products and services to the point where clients can meet their IT needs without needing to buy lots of new machines and hiring large numbers of professionals. "On-demand computing requires a different approach to building systems to the way we have done it in the past. We have to interface with more standard devices... It's a bold bet but not a risky one. The technology is ready and we understand it," he said.

Palmisano did not detail exactly where the $10bn had been invested, but said that the company's recent acquisitions of middleware vendor CrossWorlds, database developer Informix and 3,000-strong IT services operation PwC Consulting were all part of this strategy. He also highlighted the company's recent projects in the area of grid computing, notably the eDiamond cancer research venture with the UK government, as well as its autonomic computing product developments as key components of his "on-demand" vision.

He said the IT sector is in a state of "fundamental transition", but said that since he took over the day-to-day leadership of the company from Gerstner in March, his conversations with business and government leaders have been largely positive. "People have not given up their faith in technology and still believe that IT is a fundamental driver of competitive advantage," he said.

© Computerwire.com. All rights reserved.

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.