From mainframes to global networking: I.B.M. gazes into its crystal ball and, hey, where did the hardware go?
Article Abstract:
IBM plans to make the IBM Global Network a large part of its strategy as the company seeks to increase its presence in the network arena. The Global Network is a combination of all IBM networks, and company executives believe they have a hidden edge over the competition, thanks to the 25,000 customers and the $2 billion from its worldwide data and voice network. IBM plans to support the Global Network with a newly created Internet division that will create software and applications for the Global Network and other IBM groups. The company plans to devote a quarter of its $4.3 billion budget for research and development to the Internet div. IBM will use the Global Network to build private networks with an international scale, and the lack of security available on the Internet may make these private networks attractive to businesses with sensitive information. IBM also plans to focus on creating complex network services for specific vertical markets.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1995
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IBM creates a division for its at-home offerings
Article Abstract:
IBM is establishing a division that will focus on expanding the company's home consumer product line. The division, to be named later in 1995, will bring together several of IBM's current consumer-oriented product lines, such as multimedia technologies. The company will develop products and services for the new division, including consumer electronics, software and online information arrangements. The decision to create a consumer division is a significant move for IBM, which has traditionally focused on mainframe systems for large corporations and institutions. The strategy indicates that IBM, like many other companies, is beginning to accept that the future of computing is in home computing and that opportunities will abound in new technologies such as online information services, home banking, CD-ROM publishing and satellite video.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1995
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IBM allots $3.5 billion more to buy back stock
Article Abstract:
IBM's board of directors has authorized the company to spend $3.5 billion to buy back its stock on the open market. IBM's expenditure of $10 billion since Jan 1995 to buy its shares has reduced the average number of shares by 66 million and increased company earnings. IBM stock has risen 15% since Nov 15 1996. Recent cost cuts by IBM CEO Louis Gerstner Jr. have resulted in a large cash flow. The company's estimated $6 to $7 billion yearly revenues have allowed it to make acquisitions, such as the purchase of Lotus and Edmark, without impinging on its capital spending requirements. Analysts interpret IBM's stock buyback plans as an indication that the company feels its stock is undervalued. They agree that even with the rising prices, IBM stock is still a good value.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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