IBM Shifting Focus Away From Hardware?

[HardOCP News]

IBM said today that it expects software to account for half of its total profit by 2010 as the company shifts away from lower-margin segments such as hardware.

Big Blue, the world's largest technology services company, also expects "emerging country" revenue to double by 2010, CEO Sam Palmisano said Thursday at an investor briefing at the company's T.J. Watson Research Center in New York.

 

[stonedwaldo420]

This seems to go against what Tom Yeager had to say about how important AMD’s relationship with IBM is, and how beneficial it is to chip development.

I have to hand it to IBM, they seem to be great at developing new chip technology and then not doing anything productive with it. PowerPC anyone?? Even apple had to suck it up and go with Intel, despite ripping on them for years.

 

[Martyr]

hardware is expensive to make. software is a lot cheaper. consulting services are ultra cheap.

 

[MH Knights]

I wonder if they will still make chips for other companies? They have to be making a ton of money from the consoles.

 

[Unexploded]

I wonder if they will still make chips for other companies? They have to be making a ton of money from the consoles.

Find them a place where people will make chips for $10 bucks a day, and I'm sure they'll be all over it.

http://www.pbs.org/cringely/pulpit/2007/pulpit_20070504_002027.html