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Nick Summers on the Trouble with IBM

For anyone who’s interested in a long and in-depth article regarding the past and present failures of IBM, this is a great read:

www.businessweek.com/articles/2014-05-22/ibms-eps-target-unhelpful-amid-cloud-computing-challenges

Interesting bullet points and quotes from the article:

  • Amazon beats out IBM in a bid for a CIA contract to move to the cloud. IBM contends the decision – but is forced to withdraw in embarrassment when a federal judge said that due to the “overall inferiority of its proposal,” IBM “lacked any chance of winning” the contract.
  • “The agency had ‘grave’ concerns about the ability of IBM technology to scale up and down in response to usage spikes, and it rated the company’s technical demo as ‘marginal.’ Overall, the CIA concluded, IBM was a high-risk choice.”
  • IBM was the only company in the Dow Jones industrial average whose shares lost value last year.
  •  “Rometty’s predecessor, Sam Palmisano, pledged that per-share earnings would reach $20 in five years, a plan called Roadmap 2015. In interviews, and even in public Internet posts, employees refer to the plan bitterly as Roadkill 2015.”
  •  “In an August 2013 study of 15 cloud infrastructure providers, research firm Gartner (IT) rated IBM worst, behind Microsoft (MSFT), Rackspace (RAX), and Verizon (VZ).”
  •  “Hardware sales have plummeted 24 percent in two years, turning a manageable decline into a full-on implosion. As a rule, new companies are not buying their own servers and mainframes, and larger corporations, instead of ordering new machines when they reach an upgrade point, are moving their workloads to the cloud, too.”
  • “The cold-sweat scenario for IBM is that it does catch up to Amazon and other cloud providers—only to find that competition has driven margins toward zero.”
  • “Wall Street analysts have been warning, louder and louder, that IBM can’t keep cutting its way to profits forever. In May 2013, by Bloomberg’s count, half the analysts covering the stock rated it a buy. Today the rate is less than one in four.”

IBM has been around for over 100 years and fueled much of the innovation we’ve seen in the technological world. Could we be witnessing the fall of Big Blue? This article is a living history of an epic and once, seemingly invincible, technological stronghold. Read the full Article HERE. 

Why Did a 200+ Person CPA Firm in NJ Move its Data to the Coud?

No more point of failure with onsite IT equipment:

No expensive office real-estate for hardware:

 No onsite battery backup and expensive electrical supply systems:
No more licensing uses and upgrades:

 No more expensive hardware upgrades:

NOW THEY HAVE:

Access to the latest and fastest processors at a secure site:
 Triple redundant sites at geographically diverse locations
 More time to act  and think strategically  and not deal with hardware issues:
This is a true story based on a client relationship we’ve had for over 6 years. We looked at 3 acclaimed virtual cloud providers before determining the absolute best solution for their company size, culture, and needs. 
                                                                                          
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