But it is the technology surrounding the mainframe 000-053 that really pays off for I.B.M. today. Mainframe hardware alone accounts for less than 4 percent of its revenue. But when the software, storage and services contracts linked to mainframe computers are included, the figure rises to 25 percent and as much as 45 percent of operating profit, estimates A. M. Sacconaghi, an analyst at Sanford C. Bernstein & Company.
AT the moment, Microsoft is the tech company that most squarely confronts the post-monopoly predicament, as I.B.M. once did. Some of the similarities are striking, right down to the long-running federal antitrust suits that both companies endured.
But unlike I.B.M. in the early 1990s, Microsoft is not a company in crisis. It is growing steadily and remains immensely profitable. It has nurtured new businesses beyond its lucrative stronghold in personal computer software: the Windows operating system and its Office programs for word processing, spreadsheets and presentations.
Microsoft has invested for nearly two decades to build up business database software and server operating systems that run larger data-serving computers in data centers. An I.B.M. executive once declared that Microsofts attempt to move into data center computing would be its Vietnam, a humbling setback. And many analysts predicted that Microsoft would be thwarted in data centers by 000-053 competition from Linux, the free operating system.
There is evidence that the book, published last 000-539 Thursday, may find a market outside the I.B.M. orbit. Pearson printed an initial 13,000 copies for the retail market, and based mainly on preorders on Amazon ($18 in paperback; $10 Kindle), there have been two additional printings of 11,000 copies.
If you analyze aggregated cellphone traffic as researchers at M.I.T., AT&T and I.B.M. did with United States data from July of last year interesting patterns emerge.
Cities become connective hubs as people move to them from nearby counties and from far across the country. As a result, many calls originate and end in cities, connecting urban citizens to their families back home.
At the same time, communities emerge that have little to do with geographic boundaries. While some follow state lines, others split states in half or combine them.
There are sister states like Georgia and Alabama, and Mississippi and Louisiana. New Jersey and California, on the other hand, split in half because of the influences of large cities. Chattanooga, Tenn., communicates more with the Georgia-Alabama community than with the rest of Tennessee, and Pittsburgh splits from Pennsylvania to align with West Virginia. Texas remains whole, because the 000-539 communication among Dallas, Houston, San Antonio and Austin is strong enough to hold it together.
The book, Making the World Work Better: The Ideas 000-563 That Shaped a Century and a Company, is a hefty trade paperback that runs 352 pages, including 351 footnotes. It chronicles the last century from three perspectives the development of computer science, the evolution of the modern corporation and the ever-expanding uses of information technology in science, government and industry.
The concept, explained Jon Iwata, I.B.M.s senior vice president for marketing and communications, was to get three writers to tackle those three subjects and tell the story of the larger evolution and I.B.M.s place in it.
The project got an inadvertent assist from the current travails in the field of journalism, with magazines folding, cutting back and retooling. That meant three accomplished technology journalists were available and signed up: Kevin Maney, a former columnist for USA Today and contributing editor to Condé Nast Portfolio; Steve Hamm, a former senior writer for Business Week; and Jeffrey M. OBrien, a former senior editor at Fortune and Wired.
I.B.M. plays a more central role in some portions of the book than others. The company is most prominent in the section on computer science, where I.B.M. has an unrivaled record of breakthroughs in hardware and software over the years. In the section on the applications of technology, I.B.M. examples are often featured, but the main focus is on what Mr. OBrien identifies as the steps that constitute 000-563 a model for how to instigate progress: seeing, mapping, understanding, believing and acting.
The software for mining vast data troves is 000-819 called business intelligence or analytics software. In the last five years, I.B.M. has spent $14 billion acquiring 25 specialist companies in analytics. The companys analytics unit now employs 8,000 consultants and 200 mathematicians.
I.B.M. also raised its forecast for operating profit for the year, to at least $13.15 a share. The earlier guidance was for at least $13 a share.
In a statement, Samuel J. Palmisano, I.B.M.s chief executive, said the company saw excellent momentum in areas it had pegged for higher growth, including business intelligence software and emerging markets abroad.
I.B.M. reported that net income rose 10 percent in the quarter to $2.9 billion. Its earnings rose more, by 17 percent, to $2.31 a share, reflecting fewer shares outstanding as a result of the companys stock repurchase program. And its operating earnings, the figure tracked most closely by Wall Street analysts, rose 21 percent to $2.41 a share.
The earnings performance easily surpassed the average estimate by analysts of $2.30 a share, as compiled by FactSet Research.
It allows you to tame a spectrum that before was the wild, wild West, he said. For example, it might make possible a new class of Wi-Fi-style communications gear for 000-819 wireless applications, or allow set-top cable boxes to be redesigned to send and receive ever-larger amounts of high-resolution video and data.
Cost cutting and share buybacks are part of the 000-M88 answer, analysts say, but so is the steady move into higher-margin businesses and new markets. These include applying research and computing to help governments tackle challenges like traffic management, water conservation and energy use. Last week, for example, I.B.M. announced a deal with the California Department of Transportation to build systems for predicting and managing traffic.
Technology markets are known for rapid, unpredictable turns. Yet I.B.M. issues five-year plans and pretty much sticks to them. The current plan, running to 2015, singles out a few market niches for high growth.
One sector earmarked for growth is cloud computing, the technology industrys buzz term for tapping into computing resources and information in big data centers remotely over the Internet from anywhere, as if the services were in a cloud. I.B.M forecasts that its cloud business will reach $7 billion by 2015.
Another market singled out for rapid expansion is the business of helping companies mine data for useful information such as using Web traffic and social-network postings to guide marketing, sales, manufacturing and purchasing decisions.
The biggest change facing corporations is the explosion of data, said David Grossman, an analyst at Stifel Nicolaus. The best business is in helping customers analyze and 000-M88 manage all that data, and I.B.M. is making a big push there.
In a conference call, Mark Loughridge, the chief 000-M95 financial officer, described Watson, I.B.M.s Jeopardy-playing supercomputer, as a triumph of the companys skills in analytics. In February, Watson beat two human Jeopardy champions. We didnt invest just to play Jeopardy, he said. We invested to provide leadership applications for our clients.
I.B.M. said its analytics business grew 20 percent in the quarter. The 2015 goal for that business is $16 billion.
I.B.M. has a large business in Japan, about 11 percent of its total revenue, or more than $10 billion a year. Yet despite the exposure to Japan, I.B.M. had little impact in the first quarter from the tsunami and earthquake on March 11. Three-quarters of I.B.M.s business in Japan is in services, which are typically sold under contracts lasting a year or more. Services tend to be more stable in turbulent times, Mr. Loughridge said. Aided by lax oversight and by corporations that profited from his scheme, a former technology consultant stole $3.6 million over six years from the Department of Education to finance flashy cars and real estate speculation, federal authorities said on Thursday.
The payments, investigators said this week, were going through a company called Lanham Enterprises, which was owned by Willard Lanham, the same 000-M95 person who was directing the wiring project for the city.
Lanham Enterprises would then submit highly 000-M97 marked-up bills to another company, which in turn submitted marked-up bills to Verizon or I.B.M. Those companies then marked the bills up further when they submitted them to the department at rates as high as $290 an hour, according to investigators. The citys report suggests that the companies marked up the bills with Mr. Lanhams approval. None of the companies have been accused of any crime.
As the invoices traveled from one company to the next, the actual work performed by the five employees became more muddled and harder to discern.
Lanham Enterprises described them as telecommunications consultants on its bills. The companies that paid Lanham often billed Verizon or I.B.M for consulting services, but Verizons bills to the department did not refer consultants. According to the report, the bills mentioned things like installations-integration services and referred to the consultants as multiple or various on the spreadsheets that were supposed to have detailed the nature of the work. Still, the city paid the bills.
A Verizon manager acknowledged to investigators that Mr. Lanham had threatened to steer its work to I.B.M. if Verizon did not agree to use one of the intermediary 000-M97 companies, Custom Computer Specialists of Hauppauge, that Mr. Lanham wanted them to use.
Mr. Doherty added that display manufacturers 000-M99 were especially interested in graphene because the current wave of displays based on OLEDs, or organic light-emitting diodes, have limited lifespans.
Last year, researchers at Sungkyunkwan University in South Korea announced that they had scaled up a technique to make full-screen displays based on an approach to making graphene film pioneered at the University of Texas, Austin.
The promise of the low cost of the material could also push graphene into todays conventional consumer electronics systems.
In principle it can be made very cheap and it can be light-transparent, Dr. Avouris said, and so even if we dont go for high frequency, I think it can revolutionize the price of radio-frequency electronics.
He acknowledged that while I.B.M. was now able to build circuits from the material, it was still learning reliable ways to make large quantities of graphene film. It is now possible to heat a silicon carbide wafer to about 1,300 degrees Celsius (nearly 2,400 Fahrenheit), causing the silicon atoms on the 000-M99 surface to evaporate and the remaining carbon atoms to rearrange themselves into the hexagonal graphene shape.
In the Science paper, the I.B.M. researchers 000-R24 describe a demonstration in which they deposited several layers of graphene on a silicon wafer, then created circuits based on graphene transistors and components known as inductors. They demonstrated frequency mixing up to speeds of 10 gigahertz.
In the past I.B.M. has created stand-alone graphene transistors, but not complete electronic circuits.
Scientists began making flakes of graphene, an atomic-scale lattice of carbon atoms, in the 1970s. They have gradually refined the process so they can now produce films of the material that are just a single atom thick. The film arranges itself in a hexagon-shaped array of carbon atoms and has the advantages of being flexible, transparent and inexpensive to manufacture.
Evolving beyond past success is a daunting task for companies in all industries. But that problem is magnified in the technology arena, where companies can quickly rise to rule a market, seemingly invincible, until a shift in the technological landscape opens the door to a new generation of corporate dynamos.
That is certainly the test that Microsoft is struggling 000-R24 with today, as it seeks growth beyond its lucrative stronghold in personal computer software. If they are to prosper for the long haul, Google and Apple, too, must reach beyond their dominant businesses. Each of these companies, in its way, is trying.
As I mentioned in an eWEEK article yesterday, Microsoft will also 70-669 need to find a way to preserve Skype's immense brand equity--after all, it's a big part of why the software giant paid that $8.5 billion.
Big enterprises have an unnerving habit of acquiring startups and smaller companies, only to smother everything that made the latter so appealing in the first place. If Microsoft tarnishes the Skype brand, that would dampen its ability to present strongly in the communications space--and raise serious, stockholder-frightening questions about its ability to execute on strategy.
This isn't Skype's first time on the acquisition block. In 2005, eBay paid some $2.6 billion in cash and stock for the then 2-year-old communications company. Four years later, the auction site sold a majority of its Skype holdings to a team of private investors (including Silver Lake Partners and Andreessen Horowitz) for $1.9 billion in cash.
"While it's true that Skype has been slow to make money off its service, the potential is there," Forrester analyst Ted Schadler wrote in a May 10 blog posting. "Local phone numbers, three-way video conferencing, business administration, and making calls to real phone numbers are all things that people will pay for." It could also boost the 70-669 consumer appeal of Microsoft's more business-centric products, notably Lync.
The update, which brings multitasking and a complete overhaul 73-582 of the built-in Internet Explorer Web browser, was first discussed in February, at Mobile World Congress. Two months later, Microsoft took the wraps off all the planned features, promising to deliver it in the fall.
Microsoft CEO Steve Ballmer took to a New York City stage June 28 to roll out Office 365. That alone hints at the importance attached to this latest cloud-based effort, which Microsoft hopes will blunt the momentum of Google's work in the cloud-productivity arena.
He added: "I would expect that Office 365 actually heightens interest in Google Apps ... the first ingredient we need for companies to wholly embrace cloud-based personal productivity and collaboration tools is time. Time--and I mean 3-5 years--will prove or disprove the soundness of the model in terms of economics, security, stability and functionality."
"Wall Street hated the deal when eBay bought it, and they only 73-582 paid 1/4 of what Microsoft is now paying," Roger Kay, founder and president of Endpoint Technologies Associates, wrote in a May 10 email to eWEEK. "In eight years, Skype hasn't made any money, and even at the operating level, it would take three decades to pay out in cash terms alone."
And so it's gone on, for some time. But now there's 70-630 Office 365: Microsoft Office, SharePoint Online, Exchange Online, and Lync Online unified onto a cloud platform available for between $2 and $27 per user per month. Supposedly, Office 365's backend infrastructure is also tougher and more reliable than its predecessor, BPOS (Business Productivity Online Suite), which had suffered some service outages in recent months. Does that mean it's time for the Google legions in Mountain View to start shaking in their collective boots?
Google certainly seems a little freaked out about it, launching a preemptive PR blitz ahead of Office 365's launch. "Office 365 is built for Microsoft. [Google] Apps is built for choice," Shan Sinha, Google Apps' product manager, wrote in a June 27 posting on the Official Google Enterprise Blog. "Office 365 is optimized for Windows-based PCs and devices, which reduces your flexibility. Our applications are designed to work well on any device, on any operating system."
Ballmer claimed Office 365 will give small- to midsize businesses an "edge" in competing, without the burden of complex on-premises systems. Indeed, most of Microsoft's promotional materials seem 70-630 angled toward that particular audience segment. That's unsurprising, considering how analysts have been telling me for months that Google Apps' presence is strongest in companies with relatively low headcount.
"Microsoft is struggling to show value given that Google is 70-595 preaching 'free,'" Rob Enderle, principal analyst of the Enderle Group, wrote in a July 27 email. "They need to reeducate their market quickly, but don't see this as a marketing but a product problem, and are playing Google's game as a result."
For the substantial majority of companies, Office 365 likely won't wholly replace desktop-based Office anytime soon. Nonetheless, it's an ever-cloudier IT world out there.
Now that the feds have approved Microsoft's plans to acquire Skype, the difficult part's about to begin. If Microsoft succeeds, it's going to create an 800-pound gorilla in the VOIP/video-chat space--one that makes impressive amounts of money, to boot. If it fails, it'll mean the end of the Skype brand and a waste of $8.5 billion.
Under the terms of the agreement, Skype will become a Microsoft division headed by Skype CEO Tony Bates, with its services meshed with a variety of Microsoft products such as the Lync unified-communications platform, Outlook and Xbox Live. The incorporation of Skype's assets into those products represents a substantial challenge, even before you add Microsoft's determination to monetize its new toys.
"While Office 365 does put Microsoft in mortal combat 70-595 with Google," Matthew Cain, an analyst with Gartner, wrote in a June 28 email, "it is not really an existential threat for Google since Microsoft is essentially validating the model that Google pioneered with Google Apps."
Microsoft announced this morning that the next version 70-599 of the Windows Phone operating system, code-named Mango, has been delivered to manufacturers, which can begin testing it on their handsets.
The move is one of the final steps before the software arrives on new phones and is delivered to existing users as a software update. "This marks the point in the development process where we hand code to our handset and mobile-operator partners to optimize Mango for their specific phone and network configurations," Terry Myerson, Microsoft's corporate vice president of engineering for Windows phone, wrote on a company blog. "Here on the Windows Phone team, we now turn to preparing for the update process."
But according to some analysts, Office 365 isn't poised to conquer the cloud just yet.
Certainly the competition between Microsoft and Google has intensified in recent months. Tom Rizzo, senior director of Microsoft Online Services, insisted in a May 17 interview that businesses were trying Google's business-cloud offerings before shifting back into Microsoft's camp. Google executives took exception to Rizzo's assertions, arguing that Google remained the leading choice for businesses interested in cloud-based email and collaboration.
Skype's audience is used to paying little or nothing for VOIP and 70-599 video calling; if you change that, there's a significant chance they could run for the hills. If you lard up the Skype/VOIP experience with ads, you likewise risk alienating that core constituency--and sending them right into the loving arms of Google and Apple.
Since Apotheker took over eight months ago, the stock is HP0-M30 down 11 percent, compared with a 13 percent rise in the Nasdaq composite index.
The past decade has seen HP grapple with a messy takeover of Compaq, the controversial tenure of former CEO Carly Fiorina and a board spying scandal along with the ouster of Hurd.
HP's board too has seen major turnover and been harshly criticized over the years for the hiring and firing of Fiorina and the handling of a phone-tapping scandal in 2006.
Lane, a green technology enthusiast and investor, said he didn't seek to be on any public boards but was honored when the world's largest technology company by revenue asked him to join.
"I thought it needed the help," said Lane, who aims to contribute some of his entrepreneurial expertise and experience to return the former Silicon Valley icon to stability.
The last Kleiner Perkins partner to serve on HP's board was Tom HP0-M30 Perkins, a co-founder of the venture capital firm and previously a longtime HP employee.
IBM client Homeloans Management 000-560 Limited, a leading UK-based financial services firm, is using IBM software to improve business processes across its credit management, call center and customer mortgage departments. Market conditions and new regulations prompted HML to choose IBM to streamline and accelerate its existing business processes. HML needed an agile and flexible system that could be customized rapidly to meet ever-changing government requirements.
"We were specifically impressed with the enhanced installation capabilities and its heightened performance, both of which will be a great benefit to our entire organization," said Balaji Madala, IT Specialist, Department of Human Services, New Jersey.
Anticipating these storage challenges decades ago, researchers from IBM Research Almaden created GPFS to help businesses cope with the exploding growth of data, transactions and digitally-aware devices on a single system. Already deployed to perform tasks like backup, information lifecycle management, disaster recovery and content 000-560 distribution, this technology's unique approach overcomes the challenge of managing unprecedented large file systems with the combination of multi-system parallelization and fast access to file system metadata stored on a solid state storage appliance.
BM's new WebSphere Application Server is now 000-561 shipping, along with a range of new features for businesses. The new software helps clients accelerate the development and delivery of applications and services for mobile devices, cloud computing and social media.
Clients including Blue Cross Blue Shield, USAA, the State of New Jersey Department of Human Services and Homeloans Management Limited are using IBM business integration software to reach and support their customers.
"IBM has always believed that corporate design has to be purposeful," said Lee Green, vice president of Brand Experience and Strategic Design at IBM. "Design is not about cosmetics and decoration. It's about reflecting all aspects of our brand, from the solutions we provide to clients, to the corporate culture and values that permeate our organization." There are currently more than 100,000 companies worldwide gaining business benefits from IBM business integration software, including USAA, Blue Cross Blue Shield, the State of New Jersey Department of Human Services and Homeloans Management Limited (HML).
"Businesses in every industry are looking to the future of storage and data management as we face a problem springing from the very core of our success managing the massive amounts of data we create on a daily basis," said Bruce Hillsberg, director of storage systems, IBM Research Almaden. "From banking systems to MRIs and traffic sensors, our day-to-day lives are engulfed in data. But, it can only be useful if it is effectively stored, analyzed 000-561 and applied, and businesses and governments have relied on smarter technology systems as the means to manage and leverage the constant influx of data and turn it into valuable insights."
CUPERTINO, CaliforniaJuly 19, 2011Apple? today announced 9L0-837 examination financial results for its fiscal 2011 third quarter ended June 25, 2011. The Company posted record quarterly revenue of $28.57 billion and record quarterly net profit of $7.31 billion, or $7.79 per diluted share.
These results compare to revenue of $15.70 billion and net quarterly profit of $3.25 billion, or $3.51 per diluted share, in the year-ago quarter. Gross margin was 41.7 percent compared to 39.1 percent in the year-ago quarter. International sales accounted for 62 percent of the quarters revenue.
Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 which is defining the future of mobile media and computing devices.
Standard Chartered Bank is an international bank with 1800 9L0-837 branches on six continents, dozens of recent industry awards, and steadily increasing profits through organic growth and acquisitions. iPhone and iPad provide a perfect platform to expand the banks mobile services, both internally and to its increasingly tech-savvy customers.
Just around that time, leadership of the schools technology 000-183 team was shifting and, according to Mr. Condon, Mr. Lanham set out to operate freely, putting in motion a scheme that would go undetected for years, though some people began having suspicions about him. He often met vendors alone and e-mailed them without giving copies to anyone at the Education Department.
The scheme developed in much the same way with every consultant Mr. Lanham hired and every subcontractor and vendor he coaxed into playing along, including I.B.M., the report said.
After Mr. Lanham was fired, the department said, it rolled out new safeguards against rogue consultants, including an in-house contract manager responsible for approving and monitoring purchases and payments and a unit charged with carrying out price and cost analyses for contracted services.
The federal complaint says that with the money he made, Mr. Lanham and his wife bought a Corvette, a Porsche and other equally expensive cars, and he tried his hand at real estate, building luxurious homes on a piece of land he owned on eastern Long Island.
Mr. Lanham was fired in 2008, roughly two years after Mr. Condons office received anonymous complaints that he was getting kickbacks from vendors. The investigators could not find evidence of kickbacks, but while checking the accusations, they discovered that I.B.M. had been billing the Education Department for work performed by consultants hired by Mr. Lanham without authorization. The case broadened in 2008, after a senior 000-183 director at the departments Division of Instructional and Information Technology accused Mr. Lanham of hiring consultants and having their work billed by Verizon.
International Business Machines Corporation (IBM) is an 000-184 information technology (IT) company. It operates under five segments: Global Technology Services (GTS), Global Business Services (GBS), Software, Systems and Technology, and Global Financing. GTS primarily provides IT infrastructure services and business process services.
GBS primarily provides professional services and application management services. IBM's Software segment consists primarily of middleware and operating systems software.
IBM provides clients with business solutions requiring advanced computing power and storage capabi
lities. Global Financing invests in financing assets and 000-184 leverages with debt. During the year ended December 31, 2010, IBM acquired Intelliden Inc., National Interest Security Company, LLC, Cast Iron Systems, BigFix, Inc., Datacap Inc., Clarity Systems, BLADE Network Technologies, Netezza Corporation, Lombardi and Unica Corporation. In April 2011, it acquired TRIRIGA, Inc.