IBM Combines Hardware, Software Units
IBM is in the midst of an internal reorganization as it attempts to battle the likes of Oracle/Sun and prepares, it seems, for the inevitable retirement CEO Sam Palmisano, according to this report from CIO Update. IBM (NYSE: IBM) announced that it has merged its hardware and software businesses into a single unit as part of its reorganization.
IBM CEO Sam Palmisano announced his company's reorganization internally this week following IBM's second-quarter earnings. Steven Mills, previously the head of IBM's Software Group, is now senior vice president and group executive of the new group, called Systems and Software. Rod Adkins, previously senior vice president of the Systems and Technology Group, now reports to Mills instead of Palmisano.
The combination means IBM can now focus on tighter integration of hardware and software, a model that has also worked wonders for vendors like Apple (NASDAQ: AAPL).
The tight integration and working together of hardware and software teams has been the magic formula for Apple, which has built its success on mostly commodity hardware run by a seamless integration of easy-to-use software interfaces.
One of the points IBM highlighted in its new zEnterprise mainframe announcement is the integration of management, virtualization and load balancing software between the mainframe and other IBM parts. IBM has promised there would be further integration of software and hardware to simplify management and do it all from a single console, with the mainframe at the heart of it all.
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