IBM and HP are two Tech Giants for nearly 75 years. These companies have gone transformation so many times that its difficult to recognize its original form.
Times have changes. So many different opportunities are arising daily and new competitors are emerging daily.
Lets discuss how these 2 Giants are doing:
IBM
IBM is pioneer in so many things that you cannot count. After nearly going bankrupt in early 1990s, it transformed into a service based company. It work well for more than 2 decades. But now IBM is again facing a huge challenge. Rules of games have changed, but IBM is still resisting to new challenges.
With the rise of cloud computing, IBM is struggling in the new environment. Things are so bad that as per CNBC, it is a cloud challenged company. Its true. IBM still wants to do the business in old ways of managed services. Manages services is dying. IBM response for cloud is Softlayer. Softlayer is a substandard half cloud technology. IBM is loosing money now. its profits are declining. It is investing on R and D different technologies but world is yet to see any investment in cloud. Bad move
Other Challenge for IBM is its massive workforce.IBM now is a fat elephant which is finding itself difficult to move. It needs to cut labour force. Its policy of having one manager per 25 people is the stupidiest policy so far. It has got so many layers of management that only god can help. IBM needs minimum 20% workforce reduction to make it more agile.
HP
HP acquisition Of EDS changed the company forever. It gave HP a huge lifeline. It turned into a services company from just a hardware company. Ex-CEO Mark Hurd nearly destroyed HP for Just share price increase. He cut all the investment into R&D. He strangulated HP. After his exit , there was a turmoil in HP. Meg whitman came and steadied the ship. HP was smart in investing cloud computing technologies, mainly Openstack. It invested hugely in openstack and created HP CSA for cloud. Cloud computing software CSA, OOpswares, sitescope etc can work with any vendors. HP ended up with best private and hybrid cloud technology in the industry.
HP did huge investment in Big Data also. It gives an impression that HP is ready to face new competition and is ready for next century
Times have changes. So many different opportunities are arising daily and new competitors are emerging daily.
Lets discuss how these 2 Giants are doing:
IBM
IBM is pioneer in so many things that you cannot count. After nearly going bankrupt in early 1990s, it transformed into a service based company. It work well for more than 2 decades. But now IBM is again facing a huge challenge. Rules of games have changed, but IBM is still resisting to new challenges.
With the rise of cloud computing, IBM is struggling in the new environment. Things are so bad that as per CNBC, it is a cloud challenged company. Its true. IBM still wants to do the business in old ways of managed services. Manages services is dying. IBM response for cloud is Softlayer. Softlayer is a substandard half cloud technology. IBM is loosing money now. its profits are declining. It is investing on R and D different technologies but world is yet to see any investment in cloud. Bad move
Other Challenge for IBM is its massive workforce.IBM now is a fat elephant which is finding itself difficult to move. It needs to cut labour force. Its policy of having one manager per 25 people is the stupidiest policy so far. It has got so many layers of management that only god can help. IBM needs minimum 20% workforce reduction to make it more agile.
HP
HP acquisition Of EDS changed the company forever. It gave HP a huge lifeline. It turned into a services company from just a hardware company. Ex-CEO Mark Hurd nearly destroyed HP for Just share price increase. He cut all the investment into R&D. He strangulated HP. After his exit , there was a turmoil in HP. Meg whitman came and steadied the ship. HP was smart in investing cloud computing technologies, mainly Openstack. It invested hugely in openstack and created HP CSA for cloud. Cloud computing software CSA, OOpswares, sitescope etc can work with any vendors. HP ended up with best private and hybrid cloud technology in the industry.
HP did huge investment in Big Data also. It gives an impression that HP is ready to face new competition and is ready for next century
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