Feeds

Ballmer says Big Blue hands in too few pies

Memo to IBM: Eat markets the Microsoft way

Top 5 reasons to deploy VMware with Tegile

Steve Ballmer believes that if IBM is to remain relevant among the technology giants, it needs to have its hand in just about everything. In other words, the Microsoft CEO believes that IBM needs to be more like Microsoft.

The Shouty One recently disparaged Big Blue's strategy of lopping-off less profitable business arms in an interview with the New York Times. Ballmer told the Gray Lady that nowadays, tech companies must have a constant appetite for potentially risky new ventures in order to thrive and appease investors.

"IBM is the company that is notable for going the other direction," he said. "IBM's footprint is more narrow today than it was when I started. I am not sure that has been to the long-term benefit of their shareholders."

While Microsoft's biz encompasses everything from operating systems to gaming consoles to online advertising, IBM has focused efforts on proven high-margin markets to the exclusion of other endeavors. Over the last decade, the company has separately shed its routing and switching, hard disk, and PC businesses - citing economies of scale. IBM reckons there are higher profits in enterprise software and services as well as servers and mainframes.

Speaking with the NYT, the president of Microsoft's server and tools unit, Bob Muglia, said: "I don't think IBM is keeping up."

Despite the slur, IBM's choice of emphasis seems to be the right mojo for the recession. The company is still generating profit growth while its hardware sales are getting slammed. And besides, just because IBM doesn't want to peddle everything in tech doesn't mean it doesn't have a plan to place a patent on it. ®

Beginner's guide to SSL certificates

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.