Now, Big Blue is at your service: IBM using size to its advantage
Article Abstract:
IBM has emerged as the world's largest technology services provider. The company's services business unit assists clients in matters such as technology strategy, disaster preparation, employee training and initial Internet access. IBM Global Services, the unit's name, provides the foundation for IBM Chmn Louis V. Gerstner Jr.'s strategy of offering all computer products to traditional big customers. IBM Global Services recorded $19 billion in revenue in 1997, compared to its first-year total of $2.1 billion in 1990. Annual growth is surpassing 25%, and IBM deploys 50% of its 240,000-member workforce to services. These services account for 25% of IBM sales, which exceed all product lines including mainframe computers. Profits represent only 10%, which mark a far lower total than other IBM businesses. IBM Global Services now faces the future without its guiding force, Dennie M. Welsh.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Compaq at a crossroad: the challenges for the next chief
Article Abstract:
The ouster of Chief Executive Officer Eckhard Pfeiffer from Compaq Computer Corp. highlights the difficulties the company is having transforming itself from its origins as a manufacturer and marketer of personal computers into a complex company offering PC's, servers, larger computers, software and services. In the process, it remains in competition with companies that continue to concentrate on one product area, like Dell Computer, and is moving into competition with companies whose efforts are spread across a broad range of markets and services, like International Business Machines. Chairman Benjamin M. Rosen, who orchestrated Pfeiffer's departure, maintains that Compaq will continue its move into other markets, contending that Compaq simply needs better management of its growing range of products and distribution channels.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
Hostile offer for computer services unit
Article Abstract:
Computer Associates International (CA) made a hostile takeover bid for Computer Sciences on Feb 17, 1998, offering $108 a share in cash. Merger experts expect the possibility of a hostile takeover will force Computer Sciences to try to make a deal with another company and predict that one way or another the company will be sold. A long and bitter fight will only erode the value of Computer Sciences, as it will encourage executives to leave for more stable employers and cause customers to seek out more stable vendors. CA's stock dropped $2,3125 to $46.0625 a share and Computer Sciences' stock dropped 81.25 cents to $106.5625 a share on Feb 17. If Computer Sciences decides to fight the takeover, CA's next move will most likely be to elect its own group of directors to the Computer Sciences board.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Netscape to expand Internet service, boosting its rivalry with other firms. Netscape to offer new Internet software in bid to head off inroads by Microsoft
- Abstracts: Hackers prey on AOL users with array of dirty tricks. AOL swings to profit, beats estimates
- Abstracts: New trends in consulting favor those who specialise and help each other. On-the-ball Kiwi firm builds on a foundation of business consulting
- Abstracts: Netscape uses browser to beef up Web business. Netscape reports a small and unexpected profit. Netscape expected to cut 400 workers as growth slows, Microsoft toughens
- Abstracts: Microsoft rebuffed in bid to exclude expert in antitrust case. U.S. v. Microsoft: the bigger question