IBM still owns many high tech patents as their secret weapons, but they are not good to profit from their secret weapons. They ignored the PC business, missed the networking market, selling less hardware in mainframe or mid-range while IT main stream switch to web. Now I don't see their role in portable device, but just wait to see if cloud computing will bring back their glory. IBM's people were replaced by foreign people. Looks like their "THINK" is replaced by "FOREIGN THINK" too.
IBM missed the PC business BECAUSE .. their business plan excludes anything for retail consumers ... they
had no choice , but to get into pc's because many of their corporate customers were turning to pc's to replace
dumb terminals .. if IBM didn't offer pc's , then there's a lot of large systems that would have gone to Group Bull,
or somewhere else .. they DID dominate the PC market , but did not run that division for profit .. yes , they
missed networking , but not for lack of effort ...
As for mining their patent portfolio , that's another story .. back in the mid 90's , IBM announced that they
would start to make some of their patents available , but that turned out to be lip service , what they did
offer for licensing was minor stuff ... they still have the largest patent portfolio on Earth and it's a potential
gold mine ...
As for hiring foreign people .. take another look at history .. back in the 50's and 60's IBM brought brains
from India over by the boatload ...
No doubt , IBM is at a juncture ... the horse what brought them is ready for the glue factory(hardware mfg) ..
and they haven't yet gained traction in the next phase , but i would certainly NOT count them out .. garce
They missed internet search and they missed mobile wireless. All of Google would have been IBM revenue if they had the sense to pursue internet search. But the powers that were in place at the time said "how are we going to make money with that." The sad part is that they spent hundreds of millions of dollars then walked away from the project and licensed the technology to Google when Goggle was a small start up.
IBM likes 50% margins. When they got out of the PCs the margins were razor thin.....not IBM's game. They have to get cloud up and doing well, but have had some setbacks there. It seems to be progressing though.
Don't forget that they had the opporutnity to own software circa 1980, but no, the snubbed Gates, and stuck with their precious 3600 mainframe HARDWARE! The book value of this stock might be way up to $20 per share now ? Why is it levitating still ?
yes ,,, back in those days , the company was run by corporate toads dressed in pin stripes .. the biggest
miss that IBM ever had was not getting into the server game early .. they had plenty of great servers ,
but the mainframes were still seducing those guys in the corner office .. it's a much different outfit
now , with almost no loyalty to anything other than making money and they will continue to
dominate ... g