blogs.zdnet.com — The PC technology disrupted the business models of huge sectors in the computing industry, nearly all the minicomputer and mainframe companies were put out of business or disappeared through acquisitions. Even IBM barely survived–it had to reinvent itself as an IT services company.
Aug 1, 2006 View in Crawl 4
argoffAug 1, 2006
For people who think patents and copyrights spawn innovation, please take a very very close look at this article. It is precisely the failures in copyrights and patents that have led to booming industries. In IBM's case, the failure to control the PCI interface and the pin socket chips led to the biggest commerce and technology boom in 150 years. The patents that help lock in proprietary technology do not incentiveize R&D, they incentiveize non standardization and monopoly practices. Perhaps the PC boom and being unable to control the interfaces wasn't good for IBM's mainframe monopoly, but it was good for the rest of us, it was good for the industry as a whole, and in the long term even good for IBM too.
jqp123Aug 1, 2006
For people who think patents and copyrights stifle innovation, please take a very very close look at this article. Despite having the largest computer patent portfolio in the world, IBM was unable to proprietize and control the PC architecture and associated market. The fact that the massive PC boom *did* occur in such an environment offers the best possible evidence that reform of intellectual property laws is unwarranted.You see, as with many things in life, much depends on your perspective and interpretation of events.
jqp123Aug 1, 2006
"Now, instead of letting the Linux disruption catch them unprepared, they decided to ride the wave from the start."Of course, the fact that IBM had virtually nothing left for Linux to disrupt made for an easy decision.
justathoughtAug 1, 2006
Linux is disrupting all proprietary operating systems, not just Windows. IBM has AIX which they could have shortsightedly tried to protect. Instead, they realized that Linux is the next big thing and that, eventually, it will replace AIX. In the mean time, I think they are juicing AIX for all they can, while they can, but knowing full well that Linux is where the sustainable market is going to reside.
lanser84Aug 1, 2006
@ procdaddy"Disrupting business models" isn't the same thing as causing destruction. Henry Ford disrupted the business models of horse-drawn-buggy makers. Alexander Flemming disrupted the business models of doctors using blood-letting by recognizing the value of pencicilin.Even when people lose their jobs (at jobs that are no longer needed) it isn't a disaster. In the long term that is a *creation of wealth* by eliminating waste since those people take on productive jobs. Over 95% of people used to work in agriculture...mechanized and industrial agriculture have disrupted that model...most of the modern equivalent of that 95% now have different jobs that are more productive than harvesting crops by hand.It would have been immoral for IBM to not do what it did with the PC in the name of "not disrupting business models"
jqp123Aug 1, 2006
"Linux is disrupting all proprietary operating systems, not just Windows."Yes, yes, Linux has been taking over the market for years (at least according to Digg posts) but MS is still a monopoly. Sorry, you can't have it both ways. The most recent earnings report from MS was fairly strong with double digit increases from a year ago; much of it attributed to "Server and Tools" which is supposed to a Linux stronghold. How much more of this "disruption" can they take?
justathoughtAug 1, 2006
@JQP123This is how disruptions or paradigm shifts work. They come around almost undetected or unappreciated by the incumbent until it is too late. And the worst part for them is that even if they see it coming, there is very little they can do about it. Microsoft is still receiving a large amount of money from their current install base. However, the revolt is fully under way. (Remember the Bastille?) Millions of businesses are evaluating open source solutions and liking them. Now that they have a taste of it they want more. Millions of young users are learning Linux and loving it. These are the developers of the future and just ask Steve Ballmer how important developers are. Applications like Office are only going to find it harder and harder to justify their prices as time goes on. The free cross-platform alternatives are only going to keep getting better and better all the time, as well as Linux. And here is where it gets bleak for Microsoft. Linux is not going away, it cannot go broke, it will only keep getting better and better. 3rd party application developers like Adobe, Google, IBM, etc, are beginning to realize that it is in their best interest to support Linux, an OS that gives them a level playing field. Why wait until Microsoft bundles tools into the OS that erodes their market? There are only a few applications missing from Linux for it to really explode. It is only a matter of time.