Technology is, without a doubt, gaining more relevance in the world wherein we find ourselves today. This may well be the reason why many have made billions from this sector. From Smartphones to televisions, and computers to micro-processing chips, there is a whole lot of money in the industry. Having this at the back of our minds, it is, however, imperative to note that the technology market is a quite competitive one where only the fittest survive. While we are constantly saturated with information about the successful companies in this line, we seldom hear about the failings of others. One big question that however should come to your mind is; what happened to IBM?
What happened to IBM?
There used to be a time when IBM stocks dominated the market during the mid-1980s with as much as six percent of the total index. However, not long after this, the business collapsed and the company had to reinvent itself. At a point, the revenues of IBM fell for twenty straight quarters. For instance, IBM’s personal computer was bought over by Lenovo. Having said all these, it does not mean that IBM has lost relevance as they still produce computers such as the IBM I Servers, z OS mainframes, and other machines.
What this simply means is that IBM still creates computers that are the backbone of everything; however, no one appears to notice. IBM may no longer be the force it used to be in the world of personal computers, but it is indeed taking charge of other sectors.
What’s The Story Behind The Collapse Of IBM?
One thing that characterized the decline of IBM at a point was the apparent shift from the sales of the product for growth in addition to tilting towards mining customers for more money. The simple mistake IBM made at a point was to take their customers for granted based on monopoly power.
Back then, the senior leaders at IBM thought that IBM customers were so attached to the company and its products that they would buy anything IBM sold. What this simply means is that IBM saw itself as the air of many businesses and this was soon to be one of its greatest undoings. IBM was simply exploiting its customers of more money without really adding value to them in the real sense of the word.
What Are The Warning Signs That Make IBM And Apple Similar?
The greatest difference between the market of the 1980s and now is that information moves quicker now than it ever did in the 1980s thanks to the internet. In addition to this is the fact that IBM’s market back then was strictly an enterprise market that moves in a rather glacial manner when contrasted with the consumer market dominated once by Apple. To many, this means that the fall of Apple may happen quicker than expected.
The good thing for Apple, however, is that it has very large capital reserves which ought to buy them some time
What Were The Indicators That Pointed To IBM’s Decline?
The decline of IBM certainly did not happen overnight. There were clear signs of the impending loom which were largely ignored due to a feeling of dominance. One of the clear cut early signs of this was the slow-down in the sales of products. There was also the issue of a lack of market share growth in which new customers were not been added because they did not see a reason to switch.
There was also the case of a lack of innovation that could have seen a growth of the then existing customer base. And finally, there was the case of people virtually abandoning the brand which was a result of some triggers that were largely taken for granted.
What’s The Story Behind IBM?
To better understand what happened to IBM, we must take a stroll down memory lane to the humble beginnings of IBM. Let’s assume that you do not know much about IBM, perhaps this is even the first time of you hearing about them. IBM simply stands for International Business Machines Corporation. This American Company was founded back in 1911 by a certain C.R. Flint.
IBM has over time carved its niche in the world of computer software, hardware, and middleware. They also provide hosting and consultation services for nanotechnology and mainframe computers. The name IBM came into effect in 1924 after it was changed from Computing-Tabulating-Recording Company.
A Look At The IBM Of The 50s
With the change in its name, IBM strived hard to effect certain changes in its whole package as a company. In 1952 Thomas Watson Senior decided to hand over the leadership of IBM to Thomas Watson Junior. The Junior Watson continued from where the senior stopped by continuing to build upon the legacies to create something that should stand the test of time.
One of the most notable accomplishments of IBM is the efforts of IBM computers and staff towards tracking the flight of Mercury astronauts back in 1963. The following year, the technology giants made their first computer system family known, this system sold from 1964 to 1978. Furthermore, in 174, IBM came up with its universal product code which would go on to be an integral component in retail checkouts.
From The 70s With A Love
From the 1970s, IBM has steadily been buying several companies such as SoftLayer Technology, while also forming alliances with large corporations like Apple. In addition to this, during the latter half of IBM, the company had a change from computing to security. This means that it began offering services that assist different establishments’ world over.
However, it should be noted that even though IBM has shifted its focus, it still ranks as the highest recipient of the American Patents for over twenty years. This goes a long way in indicating that IBM does not look like slowing down anytime soon. Added to the fact that IBM has been the highest recipient for this award, it also has different awards and recognition like the number one company for leaders bestowed on it by Fortune Magazine. Also, back in 2012, Fortune ranked IBM as the second-largest firm in America in terms of employee size.
What Has Ibm Been Up To?
Currently, IBM is working on Credit card transaction authentications, or perhaps they may be working on flight sales. These and more are carried out on the System-Z platform which assists in enclosing mainframe technology. IBM current possesses about ninety percent of the total market share of hardware used in transactions.
Quite recently, IBM began making use of high-end Power Systems to create solutions on high-performance computing. In addition to this, IBM is also quite active on HPC with a regular feature on the Top500 list.
Is Apple The New IBM Of The 1980s?
There have been some similarities between the near-collapse of IBM back in the 1980s and what Apple seems to be experiencing. Some experts think that the approach been deployed by Apple n terms of customer approach bears great similarity to that of IBM in the 1980s. the art of mining existing customers with increased prices and lower value may well not end for Apple
Where Is IBM Today?
The name IBM may not ring a loud bell especially with the younger generation, but does that mean it is down and out? Not! You may be wondering why you should be concerned about IBM when Apple only recently launched the iPhone 11.
Well IBM on its own also appears to have taken a rear seat even as they have begun forming new alliances. It is quite certain that IBM does not look like dying anytime soon. It looks quite comfortable playing its role behind the scene as a sort of puppet master.
Without a shred of doubt, IBM looks set to continue to leverage on its decade’s worth of work and investment in the technology space. The question regarding what happened to IBM is certainly one that will be discussed for a long time to come especially among business enthusiasts. However, what will happen next should be of greater interest to all.