Posted by Ajohnw on 01/06/2016 17:34:31:
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In a round about way IBM were responsible for their own "fall" if that is the right word.
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John
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Edited By Ajohnw on 01/06/2016 17:36:55
Life got very difficult for the likes of IBM as computer technology advanced. I once went to a customer presentation where a big company told us why we should buy their stuff.
- First on were the Microcomputer group. They explained that micros were the future and that minicomputers and mainframes were far too expensive and inflexible.
- Second on were the Minicomputer team. Their sales position was that the microcomputer was a puny joke incapable of real work and that the mainframe was a hideously expensive behemoth only good for old fashioned batch processing.
- Third on were the Mainframe boys. They explained that microcomputer and minicomputers were a fashion that wouldn't last. A mainframe apparently could "tuck everything they could do into a corner" without noticing.
- Last to speak was the parallel computing team. They explained that they were developing a multiprocessor machine that would outperform the company's most expensive mainframe by a factor of 20 for about half the cost.
Then as now technology companies have as much trouble seeing into the future as everyone else. In consequence this big computer firm was competing with itself, which cannot be good. And they weren't the only one!
Another way people get it wrong. Having spent a lot of money on producing profitable old lines it is all too tempting to stick with them. Kodak, for example, did a lot of original R&D on digital photography but walked away afterthe board sold all their digital patents to competitors after deciding that their huge investment in film, conventional cameras and processing was "safe". After all film images were of much higher quality!. Unfortunately film was about as good as could get, whereas digital has massive untapped potential. Alas for Kodak, film sales all but collapsed whilst digital boomed.
Digital is no sinecure. The rise of good cheap cameras in phones has seriously damaged the market for compacts , whilst bridge cameras are busy undermining the profitability of SLRs.
If I could predict the future I'd be rich!
Cheers,
Dave
Edited By SillyOldDuffer on 02/06/2016 12:34:26