Word: desktop
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...clearly feels threatened. And the wounded giant still poses the biggest threat to any future dominance by Intel and Microsoft. Last year it teamed up with both companies' most bitter rivals -- Apple Computer and Motorola -- to develop advanced software and microprocessors for a new generation of desktop computers. In selecting Apple and Motorola, IBM bypassed its longtime partners. Just as Microsoft's standard operating system runs only on computers built around Intel's computer chips, Apple's software runs only on Motorola's chips. Although IBM has pledged that the new system will eventually run on a variety of machines...
...around the world. An employee has something personal to tell a co-worker -- a confidence, a joke, a bit of gossip that might give offense if it were overheard. Rather than pick up the phone or wander down the hall, he or she simply types a message on a desktop computer terminal and sends it as electronic mail. The assumption is that anything sent by E-mail is as private -- if not more so -- than a phone call or a face-to-face meeting...
...including personal computers. But the massive cuts are mainly a signal that IBM is finally acknowledging a fundamental change in its core mainframe-computer business. For years, Big Blue has tried to ignore the market's shift away from the closet-size number crunchers to less expensive but powerful desktop computers and workstations. Now declining sales of mainframes have forced IBM to face up to the transition...
...enough to restore IBM's competitive edge. Distracted by endless rounds of cutbacks, the company lost sight of the ball. IBM fumbled in market after market: it fell behind in computer-chip technology, and it engaged in a self-destructive battle with software powerhouse Microsoft over the direction of desktop-computer programs. Even worse, IBM began losing money and market share in two of its vital markets: mainframes and personal computers. Here IBM is faced with a double quandary: it remains the world leader in the market for mainframes, but the large systems are fading fast in importance. Meanwhile, personal...
...four decades, the mainframe was the queen bee of office computing. The gigantic machines often served as host for an army of white-collar workers, who were linked together in a single network of as many as 10,000 "dumb" ( desktop terminals. The market for these behemoths regularly grew 15% a year, but sales have slowed to 4% since 1990 as customers have turned to less expensive but powerful personal computers and linked workstations. Many manufacturers of large systems have already fallen victim to this irreversible change. In August, Wang Laboratories was forced to file for bankruptcy. Unisys...