Analysts speculate that only a small subset of the eventual service offering is now in place. Leong and Chamberlain (2009, p 1) note that this is true industry-wide. In their Gartner article, they rate IBM as a leader, with vision and the ability to execute that vision. It is important to stress IBM’s history of executing visions for small businesses.
Although On-Demand is a far cry from selling hardware, it does follow the IBM tradition of supporting small businesses. Here is a short, visual history of its support for small business over the past century. All of the equipment shown below was designed for and used by small and medium sized organizations.
1930s-40s: IBM 405
1940s-50s: IBM 603
1950s-70s: IBM 1400 Series
1960s-80s: IBM System 3 Series
For the 1980s-2000s, IBM Defined an Era
For 2009 and the future: On-Demand Services
IBM anticipates that 60% of the profits in the high-tech industry will be derived from software services (see Vanides, 2009, p 1) and they want to be there. IBM has purchased an on-demand tool vendor and a major consulting firm. IBM itself is eating its own dog food and becoming a user of its on-demand services.
References
Figure 1: IBM 405 Series Business Machine. Retrieved on September 19, 2009 from
http://www-03.ibm.com/ibm/history/interactive/index.html#/EarlyAmbitions/405AccountingMachine
Figure 2: IBM 603 Series Adding/Multiplying Machine. Retrieved on September 19, 2009 from
http://www-03.ibm.com/ibm/history/interactive/index.html#/GrowingInfluence/603ElectronicMultiplier
Figure 3: 1400 Series Computers. Retrieved on September 19, 2009 from http://www-03.ibm.com/ibm/history/exhibits/mainframe/mainframe_PP1401.html
Figure 4: IBM System3 and 30 Series Computers. Retrieved on September 19, 2009 from
http://www-03.ibm.com/ibm/history/exhibits/rochester/rochester_4008.html
Figure 5: IBM Personal Computer. Retrieved on September 15, 2009 from
http://www-03.ibm.com/ibm/history/exhibits/pc/pc_1.html
Figure 6: On-Demand Services. Retrieved on September 20, 2009 from
http://www.ibm.com/ibm/ideasfromibm/us/smartplanet/20081106/index2.shtml?&re=sp2
Leong, Lydia and Ted Chamberlin (July 2, 2009). Magic Quadrant for Web Hosting and Hosted Cloud System Infrastructure Services (On Demand). Gartner Research, ID G00168687. Also, retrieved on September 16, 2009 from http://www.rackspace.com/downloads/pdfs/GartnerMagicQuadrant.pdf
Vanides, Alexia (2009a). Lesson 5: Online and Other Email Marketing Techniques. Retrieved from WVU IMC 626 Week Five Lesson on September 13, 2009.
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