<![CDATA[Valleywag: Ibm]]> http://cache.gawker.com/assets/base/img/thumbs140x140/valleywag.com.png <![CDATA[Valleywag: Ibm]]> http://valleywag.com/tag/ibm http://valleywag.com/tag/ibm <![CDATA[ IBM running out of ideas ]]> The company whose "Think" slogan became a generational buzzword isn't doing so well with the brand identity campaigns lately. A tipster points out that IBM's latest mouthful of a proverb, "A mandate for change is a mandate for smart," comes illustrated with what looks exactly like a 1981 Keith Haring drawing rinsed of its pizazz. The accompanying essay reads like Kevin Kelly in Wired circa 1993. I stopped reading when I got to the claim, "Smart healthcare systems can lower the cost of therapy by as much as 90%." Call me when that's ready.

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Mon, 17 Nov 2008 09:52:11 PST Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5090878&view=rss&microfeed=true
<![CDATA[ Apple's CEO-in-waiting ]]> Some days it seems like Steve Jobs will be CEO of Apple until he dies. But after a bout with pancreatic cancer and a health scare earlier this year, peope are starting the grieving process earlier. Part of that involves playing a guessing game about who will take his place. Fortune convincingly argues that Apple COO Tim Cook is the only real candidate.

Cook is paid more than anyone else at Apple, and he's the only executive allowed an outside board seat (Cook is a director at Nike). More importantly, he's humble enough not to push for a CEO job that can never be his as long as Jobs is in the saddle.

True, Cook is an operations expert, not a product genius like Jobs, but he could surround himself with Apple executives like Scott Forstall and Jonathan Ive to make up for that lack. Only one wild card: Mark Papermaster, the IBM chip executive whose recruitment by Apple has embroiled the companies in a lawsuit. if the hire goes through, Papermaster will report to Jobs, not Cook.

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Mon, 10 Nov 2008 10:40:00 PST Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5080924&view=rss&microfeed=true
<![CDATA[ IBM CEO begs Obama for bailout ]]> The world's biggest IT services firm fed the New York Times a copy of a speech CEO Sam Palmisano was scheduled to make today in front of the Council of Foreign Relations in New York City. Sam's proposal is blatant: "A technology-fueled economic recovery plan that calls for public and private investment in more efficient systems for utility grids, traffic management, food distribution, water conservation and health care." Also, free Zipcars for gossip bloggers.

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Thu, 06 Nov 2008 15:00:00 PST Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5078804&view=rss&microfeed=true
<![CDATA[ iPod's father leaves Apple ]]> Tony Fadell, the head of Apple's iPod division, is exiting Steve Jobs's reality distortion field. While Fake Steve Jobs likes to take credit for inventing the frigging iPod, its real mastermind is Tony Fadell, who took his plans for an MP3 player to Apple in 2001 as a consultant. His replacement: Former IBM chip expert Mark Papermaster, whose erstwhile employer is suing Apple to prevent him from taking a job there. That Papermaster is replacing Fadell makes its lawsuit even stranger; it is seeking to enforce a noncompete clause in his contract, but a job overseeing MP3 players and cell phones hardly seems a competitive threat to IBM. Fadell is planning to take some time off Pity. Since he joined Apple, Fadell's homepage has turned into a placeholder. We were looking forward to the return of the "jazzy, shameless self-promotion" it once offered.

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Mon, 03 Nov 2008 23:00:00 PST Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5075618&view=rss&microfeed=true
<![CDATA[ Apple poaches IBM chip guy Mark Papermaster ]]> Who's Mark Papermaster, the chip guru Apple and IBM are scrapping over? Here's one clue: He's the kind of guy who has no photos online. There used to be a "Mark Papermaster" profile on Facebook, but it's gone. No wonder he wants to disappear: Apple hired Papermaster, formerly a VP at IBM, possibly to run its PA Semi chip-design subsidiary. Apple switched to Intel chips for its Macs years ago, but after it bought PA Semi, speculation grew that it might use some variation on IBM's Power chips for the iPhone and iPod. Papermaster could help with that.

IBM is suing Papermaster and Apple over the terms of his noncompete agreement. Apple and IBM hardly compete, which makes IBM's lawsuit a bit puzzling. California law is unfriendly, in general, to noncompete agreements; if anything comes of the lawsuit, it will likely be some kind of settlement. Here's why I think IBM is suing Apple and Papermaster: It just wants to get some idea of what Apple's up to.

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Fri, 31 Oct 2008 14:20:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5071950&view=rss&microfeed=true
<![CDATA[ Are tech companies turning into banks? ]]> When Wall Street fails, Silicon Valley must step up. So goes the hubristic thinking here. Debt greases the wheels of commerce, and the sale of servers and software is no exception. And that part of the credit industry has hit a rough patch, too, with defaults on equipment loans nearly doubling in the past year. As with other credit markets, this had made traditional lenders nervous. So cash-rich tech companies are venturing into lending themselves. IBM has long had an in-house lending arm, with $24.5 billion in loans outstanding. Cisco lent $4 billion to customers last year. Even eBay is getting into the game through Bill Me Later; it acquired $550 million in consumer loans in conjunction with the purchase of the payments startup.

We know how this ends — with tech-company shareholders footing the bill. Cisco wrote off $900 million in bad debt in 2001. It will surely claim to have learned its lessons since then. But as others rush in to help customers acquire their wares, some will surely get burnt. As will investors, who may think they're buying shares in a tech company, only to discover they've put money into a bank.

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Mon, 27 Oct 2008 10:20:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5069065&view=rss&microfeed=true
<![CDATA[ IBM didn't get the memo, thank God ]]> The world's largest computer services company pre-announced Q3 earnings with profits beyond analysts' forecasts. Even the Nasdaq is up on the news. Quick, ask your parents for that iPhone now.

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Wed, 08 Oct 2008 16:30:00 PDT Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5060818&view=rss&microfeed=true
<![CDATA[ IBM makes environment easy to bookmark and forget ]]> "Energy-efficient computers powered by sunshine. This will be an instant hit," grouses chief bitterness officer Ted Dziuba in his latest opinion column for The Register. "There will be greenhouse gas output dashboards with neat little Ajax widgets." Mystery contributor theodp points out that IBM already sells it.

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Tue, 26 Aug 2008 14:20:00 PDT Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5041945&view=rss&microfeed=true
<![CDATA[ mrfomoco ]]> In a post showing slides from IBM's 1975 presentation, commenter mrfomoco deftly explains the genius behind Big Blue's marketing, complete with visual aides:

This is IBM's stock-in-trade, right out of Sales 101a: Pretend to know something the buyer doesn't. You use the customer's own fears against them, to overcome rational objections.

So, they drag the same old scare tactics — Sweet Jesus, they're gaining on you! Don't just stand there, do something! — out of the marketing closet, every few years. Here, it's a roomful of affirmative graffiti ('THINK' being notably absent), plus a charmingly recursive slogan, 'The decision to decide' ([www.squareamerica.com]). More recently, silly execs building 'Innovation Rooms' were chastised with, 'Stop Talking. Start Doing'.

It's the kind of insight you'd expect to hear from luminaries like Yoda or Pat Morita, so I'm guessing it works like those cheap Jedi mind-tricks. Unless you're a Toydarian, of course.

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Thu, 31 Jul 2008 16:40:00 PDT Alaska Miller http://valleywag.com/index.php?op=postcommentfeed&postId=5031725&view=rss&microfeed=true
<![CDATA[ IBM preso from 1975 proves they had better fonts then ]]> One foot in the future, one planted squarely in the '70s. These slides from an IBM presentation — 17 years before anyone bothered to plug the projector into a laptop — prove how little has changed. Except now the office workers behind the narrator have YouTube to watch whenever he turns his back.

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Thu, 31 Jul 2008 12:00:00 PDT Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5030682&view=rss&microfeed=true
<![CDATA[ IBM's new antitrust muddle ]]> European regulators are looking into whether IBM is unfairly dominating the mainframe market. What, is this 1968? IBM's purchase of Platform Solutions, a 36-person rival which made cheaper versions of IBM's mainframes, would normally be too small to rouse antitrust inquiries. But, amid accusations that IBM bought the firm to quash a rival, regulators are looking into it nonetheless. I'm actually disinclined to believe the conspiracy theories. IBM, under official antitrust oversight for decades, surely doesn't want to invite government officials back in.

More likely: IBM was the only likely buyer for Platform Solutions, which may have been running into financial trouble. One former contractor for the startup tells Valleywag that his work for Platform Solutions went unpaid for months before his contact there dropped out of sight altogether in January.

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Thu, 03 Jul 2008 13:20:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5022021&view=rss&microfeed=true
<![CDATA[ IBM employee directory mocks your company's lameness ]]> Tech companies like to babble about openness and transparency. But try finding an engineer's phone number. Standard procedure is to hide company telephone and email directories from external eyeballs, lest a recruiter — or, more annoyingly, a reporter — use the phone list to cold-call staffers. One shining exception: IBM, the world's largest IT employer, with nearly 400,000 people on board in at least 90 countries. Why would the company publish its entire directory and risk attack from headhunters and snoops? Because in 2008 IBM doesn't sell servers, it leases brains. Customers don't want to submit a request to a faceless feedback form and hope the right person at the world's biggest, sprawlingest tech company sees it. I'm sure there was a fight over the decision. But they finally faced the truth: We already hunt their employees down on Blogger and LinkedIn.

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Wed, 02 Jul 2008 13:00:00 PDT Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5021488&view=rss&microfeed=true
<![CDATA[ Bill Gates's relevance -- and irrelevance ]]>

The Economist tidily sums up billg's career this week, now that Microsoft's Rain Man (see video) has walked away from the company after 33 years. I've whittled the piece down to its talking points.

When Bill Gates helped to found Microsoft there was a company rule that no employees should work for a boss who wrote worse computer code than they did. Just five years later, Mr Gates hired a business manager, Steve Ballmer, who had cut his teeth at Procter & Gamble, which sells soap.

In becoming the world’s richest man, Mr Gates’s unswerving self-belief has repeatedly been punctuated by that sort of pragmatism. To let it all go is to acknowledge that his best work at Microsoft is behind him. It is to accept that the innovator’s curse is to be transitory.

Mr Gates’s vision has come to seem so obvious that it is hard to imagine the world any other way. Yet, early on, he grasped two things that were far from obvious at the time:

  • Computing could be a high-volume, low-margin business. Until Microsoft came along, the big money was in maintaining a select family of very grand mainframes. Profit would come from selling a lot of them cheaply, not servicing a few at a great price.
  • Making hardware and writing software could be stronger as separate businesses. When mighty IBM unwittingly granted Microsoft the right to sell its PC operating system to other hardware firms, it did not see that it was creating legions of rivals for itself. Gates did.

Mr Gates’s invention was as a businessman. His genius was to understand what he needed and work out how to obtain it, however long it took. In an industry in which visionaries are often sniffy about anyone else’s ideas, the readiness to go elsewhere proved a devastating advantage.

Gates had the good fortune to be perfectly suited for his time—but he is less well-equipped for the collaborative and fragmented era of Internet computing. Some great industrialists, like Henry Ford, stick around even as the world moves on and their powers fail. Mr Gates, pragmatic to the end, is leaving at the top.

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Wed, 02 Jul 2008 11:40:00 PDT Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5021476&view=rss&microfeed=true
<![CDATA[ Google, HP and others form League of Extraordinary Patent Holders ]]> Tired of fielding lawsuits from patent trolls and scared of court injunctions like that faced by RIM which nearly shut down the company's BlackBerry service, Google, Hewlett-Packard, Cisco, Verizon and Ericsson are among the companies rumored to be behind the formation of the Allied Security Trust. Ponying up $250,000 down payments and $5 million in escrow to make purchases, the trust seeks to buy patents before they fall into the hands of patent trolls. (That's the polite name the group's founders use for companies which seek to make money litigating infringers rather than by create products.) But the real bogeyman here is the rise of a possible patent troll to rule all patent trolls, Intellectual Ventures, which has close ties to Microsoft.

The plan is for companies that buy into Allied Security to buy up unused patents, issue themselves nonexclusive licenses for a song and then sell the patents. While it's not clear if Allied Security is a nonprofit, former IBM veep Brian Hinman who heads up the organization asserts it's not a profit-making venture. IBM, of course, has done much to refashion itself as a promoter and producer of open-source software — something anathema to Microsoft's culture.

The same can't be said of Intellectual Ventures, which was founded by former Microsofties Nathan Myhrvold and Edward Jung, Intel's Peter Detkin, and Gregory Gorder of Seattle law firm Perkins Coie, which counts Microsoft as a top client. Myhrvold has been buying up patents left and right, and while his company has yet to sue anyone, he hasn't ruled it out. Microsoft executives have traditionally aped Bill Gates hard-line rhetoric when it comes to intellectual property, and there's little reason to believe Myhrvold and company are any different. While Google is also an investor in the fund (along with Apple and eBay), the Mountain View company must be worried enough about the fund's plans and ties to have helped create a potential competitor.

In other words, if Intellectual Ventures continued to aggregate patents in a competitive vacuum, it could become just as if not more dangerous a monopoly than Microsoft in the company's heyday by commanding premium royalties or denying access to patents entirely in order to hobble products and competitors. It's yet to be seen if Intellectual Ventures will carry water for the Redmond software giant in court, and for now, Allied Security is collection of legal documents and yet an actual owner of patents, but this could shape up to be one of the most boringly important battles in the coming years.

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Tue, 01 Jul 2008 09:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5020978&view=rss&microfeed=true
<![CDATA[ Bill Gates looks back at the competition Microsoft annihilated ]]> Putting media naysayers in their place, Microsoft co-founder Bill Gates continued his farewell tour by pointing to old press accounts of companies like Ashton Tate and Lotus as worthy competitors into the perspective only the ultimate winner can enjoy. When asked by CNET's Ina Fried about the early presumptions that IBM would eat Microsoft's lunch and how that turned out, Gates used the opportunity to challenge those who would similarly presume that Google will eventually destroy Team Redmond.

Google is a very strong competitor, and so people will enjoy watching whether they can be challenged. The world will be better off if they are challenged effectively, and I think there's only one company left in terms of the depth and breadth and staying power that you need (to) really give them a big challenge.

Google-baiting aside, did Gates bringing up WordPerfect make anyone else feel really, really old?(Photo by AP/Stephen Brashear)

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Tue, 24 Jun 2008 14:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5019347&view=rss&microfeed=true
<![CDATA[ Interview with Konrad Zuse, inventor of first functional computer ]]> In the 1930s, Konrad Zuse, a German scientist, invented the first functional computing device, an electromechanical beast that used relays as logic gates. In this interview from The Machine That Changed the World, a 1992 documentary digitized and posted by Upcoming founder Andy Baio at Waxy.org, Zuse spoke about his role in history.

"You could say I was too lazy to calculate, so I invented the computer." The whole documentary is a lot of fun to watch — famed British thespian David Jacobi even makes an appearance in a dramatization as the legendary Alan Turing. Zuse and Turing were on opposite sides of World War II, with Zuse's machine mostly used to crunch numbers for the Nazis' rocket projects. Helping to keep track of the undesirables intended for slaughter in the concentration camps? That was IBM's job.

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Tue, 03 Jun 2008 16:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5012771&view=rss&microfeed=true
<![CDATA[ HP moving to acquire EDS in $12 billion-plus deal ]]> HPThe Wall Street Journal is reporting that Hewlett-Packard is nearing a deal to buy EDS for $12 billion to $13 billion. Having set Dell back on its heels in PC sales, HP is now moving to challenge IBM. As computers become commodities, the money is in installing and maintaining them, not marking up Intel's microprocessors and Microsoft's operating system for a thin margin. One wonders if Michael Dell is gutsy enough to launch a rival bid — or, with HP now worth three times as much as Dell, if he can really afford to.

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Mon, 12 May 2008 12:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=389676&view=rss&microfeed=true
<![CDATA[ White House used Microsoft software to flout email-archiving law ]]> Outlook on email preservationAt last, an explanation of the Bush Administration's misbehavior that will resonate in Silicon Valley: It's all Microsoft's fault. Ars Technica details how switching from an IBM Lotus email system installed under Clinton to a Microsoft Exchange server made it impossible to store White House emails systematically. The archiving system was operated manually, and Bush appointees nixed efforts to upgrade it. CIO Theresa Payton says that the White House is now working on a new system, but knowing the ways of both Washington and enterprise software, what are the chances it will be done before we have a new president?

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Wed, 30 Apr 2008 15:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=385888&view=rss&microfeed=true
<![CDATA[ IBM researcher plugs house into Twitter for energy usage updates ]]> It's only a matter of time before the inanimate home of inventor Andy Stanford-Clark somehow pisses off TechCrunch publisher Michael Arrington and feels the wrath of "@andy_house blocked." [Earth2Tech]

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Wed, 30 Apr 2008 14:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=385855&view=rss&microfeed=true
<![CDATA[ IBM dividends up, American jobs down ]]> Big Blue raised the company's dividend 25 percent to $0.50 per share, as union employees and retirees picked outside headquarters to protest outsourcing and pension problems. [AP]

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Tue, 29 Apr 2008 12:40:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=385289&view=rss&microfeed=true
<![CDATA[ Now we can relax: IBM files patents to fight the apocalypse ]]> post-apocalypse.jpg Worried about the next "episode of profound chaos" headed our way? Don't be! Your friendly International Business Machines Corporation is on the job. In 2006, IBM filed a patent for "computer usable program code" designed to optimize skills and resources during "episodes of profound chaos during hurricanes, earthquakes, tidal waves, solar flares, flooding, terrorism, war, and pandemics to name a few." As "human beings," IBM explains, we are "generally very ill prepared at a mental level for planning for and dealing with chaotic events." Which is true, but can we call it off if the program starts to get too good at chess?.

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Sat, 12 Apr 2008 10:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=379000&view=rss&microfeed=true
<![CDATA[ IBM's board authorized $15 billion in additional ... ]]> AP051110039198.jpgIBM's board authorized $15 billion in additional stock buybacks for 2008 and raised its future outlook. The company spent $18.8 billion on buybacks last year and has repurchased $94 billion in the past 13 years. Why, that's two Yahoos! [AP]

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Tue, 26 Feb 2008 13:53:42 PST Jordan Golson http://valleywag.com/index.php?op=postcommentfeed&postId=361071&view=rss&microfeed=true
<![CDATA[ IBM solves global warming once and for all ]]>
IBM has ended the climate crisis by making an educational virtual world for teens.

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Fri, 15 Feb 2008 12:20:45 PST Mary Jane Irwin http://valleywag.com/index.php?op=postcommentfeed&postId=357121&view=rss&microfeed=true
<![CDATA[ Smaller chip mean a cheaper PS3 -- and a comeback for Sony ]]> Cell ProcessorGadget battles are won and lost on the price of components. In that regard, Sony has had poor luck with its latest PlayStation console. Its hulking size, exorbitant price, and dearth of interesting titles left it vulnerable to the Wii's unexpected rise. Gamers were more interested in the Wii's casual fun than the PS3's sophisticated Cell processor, especially since the available games hardly made much use of the expensive piece of gear. But the Cell is about to get cheaper. Manufacturer IBM has reduced the size of the chip to 45 nanometers, a technological leap which will at once make the processor cheaper and easier to cool, requiring a smaller case. Good news, at long last, for Sony.

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Thu, 07 Feb 2008 14:40:59 PST Mary Jane Irwin http://valleywag.com/index.php?op=postcommentfeed&postId=353957&view=rss&microfeed=true
<![CDATA[ IBM ad mocks IBM strategy ]]>
A new IBM TV ad mocks the make-a-wish economics of virtual-world purveyors like Linden Lab. Perhaps Big Blue's ad agency didn't get the memo: In India, IBM is expanding its ranks of Second Life salespeople.

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Mon, 04 Feb 2008 15:20:24 PST Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=352524&view=rss&microfeed=true
<![CDATA[ IBM cuts 7,600 employees' salaries by 15 percent ]]> International bullshit machine src=IBM tech-support workers believe they are eligible for overtime pay. And IBM agrees. It's just going to cut their salary by 15 percent to make up for it. After hearing the news, "I was so angry I could hardly speak, and it takes a lot to make me angry," one IBM employee told the AP. "I just don't know how IBM expects us to take this and just run with it." Here's my guess: They don't. If any of the 7,600 employees affected leave, it might just help IBM hike its recently raised 2008 earnings outlook even more.

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Thu, 24 Jan 2008 12:20:20 PST Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=348562&view=rss&microfeed=true
<![CDATA[ IBM reported strong preliminary fourth-quarter ... ]]> IBM reported strong preliminary fourth-quarter results that sent the technology company's shares sharply higher. IBM said earnings from continuing operations were $2.80 a share, up 24 percent from $2.26 a year earlier, while revenue rose 10 percent to $28.9 billion. Overseas sales helped results beat analysts' estimates. [WSJ]

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Mon, 14 Jan 2008 13:25:52 PST Jordan Golson http://valleywag.com/index.php?op=postcommentfeed&postId=344696&view=rss&microfeed=true
<![CDATA[ New York investigates Intel for bullying ]]> IntelThe state of New York is launching its own investigation into Intel's anticompetitive behavior, adding to a list including the European Commission and Korea, all egged on by chipmaking rival AMD. It's only natural for New York attorney general Andrew Cuomo to want in on the action. The accusations are similar to other investigations: penalizing computer makers who purchase non-Intel chips, improperly signing exclusive contracts, and cutting off competitors' access to distribution channels. In other words, conducting business a bit too effectively for rivals' tastes. Note that IBM's main chip-assembly plant is based in New York.

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Thu, 10 Jan 2008 14:28:48 PST Tim Faulkner http://valleywag.com/index.php?op=postcommentfeed&postId=343476&view=rss&microfeed=true
<![CDATA[ IBM CEO punishes employees for having fat kids ]]> Big Blue, the next generationCEO Sam Palmisano is proud of how "responsible" IBM has been. But don't forget: A corporation's only true duty is to its shareholders. And that's reflected in IBM's 2007 Corporate Responsibility Report. There's no cost-savings measure that can't be spun as a do-good move. Like IBM's Healthy Livings initiative, which effectively punishes employees for being fat. In 2007, Palmisano proudly writes, that program was expanded to cover employees' fat children as well. Technically, thin employees and their brood get "rebates," but it adds up to the same thing: Big Blue makes you pay for being big. After the jump, the chest-thumping brag from Palmisano, who's not that small-boned himself.

IBM's culture of health

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Fri, 21 Dec 2007 12:40:30 PST Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=336911&view=rss&microfeed=true
<![CDATA[ Amazon.com's SimpleDB is perfect for your stupid Web 2.0 startup ]]> Amazon now offering SimpleDB to the simplemindedThose not initiated in the mysteries of databases, i.e. most of us, may think that Amazon.com's new SimpleDB service is competition for established databases from Microsoft, Oracle, and IBM. It's not. Nor is it, in the lofty language of Web-computing evangelists, a "cloud-based" alternative to large Web databases. But it's probably a perfect match for your stupid Web 2.0 startup, which makes it a genius move by Amazon.

SimpleDB lacks some of the most basic features of "relational" databases, the entrenched enterprise products which pay the salaries of those pasty sysadmins who natter on for hours about stored procedures and triggers when you just want them to run a report. As Uncov has smartly observed, SimpleDB is 18 times less efficent than other databases.

But that's not a bug, that's a feature. Amazon has designed a database which transmits data inefficiently, and then charges users by the amount of data transmitted. The MBA who put together this business plan deserves a raise. This isn't a database; it's a Ponzi scheme. One designed to transfer money from venture capitalists to Amazon.

So who's the patsy? Well, startups who have already gotten hooked on Amazon's other cloud-computing services, like S3 (storage) and EC2 (computing). They're a natural target. Amazon helps them get up and running with a proof-of-concept website. Never mind that it won't scale cost-effectively. By the time a real CTO gets hired and figures that out, they'll already have raised $40 million from unwitting venture capitalists. In the meantime, the startuppers get to tell users that their data is safely stored with Amazon, a name consumers trust. Win-win-win.

SimpleDB's perfect for anyone who's not aiming to serve millions of users. In other words, most of the Web 2.0 startups today that won't be around two years from now. If your ambitions are low, your technical skills lower, and your sense of shame lower yet, Jeff Bezos has the database for you.

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Mon, 17 Dec 2007 12:44:58 PST Tim Faulkner http://valleywag.com/index.php?op=postcommentfeed&postId=334725&view=rss&microfeed=true
<![CDATA[ IBM wants to embed advertising into your ... ]]> IBM wants to embed advertising into your DVDs. An application filed with the Patent Office outlines a scheme to insert unskippable ads into your home viewing experience, presumably as a way to cash in on the rental market. You might not want to return that Internet-ready HD-DVD player you bought on Friday. [Ars Technica]

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Mon, 26 Nov 2007 10:36:42 PST Mary Jane Irwin http://valleywag.com/index.php?op=postcommentfeed&postId=326318&view=rss&microfeed=true
<![CDATA[ IBM purchased Canadian software maker Cognos ... ]]> IBM purchased Canadian software maker Cognos for $5 billion in cash. Big Blue generally looks at acquisitions under $1 billion, making this one its largest acquisition ever. The largest prior acquisition was of Lotus for $3.5 billion many years (and a bubble or two) ago. [FT]

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Mon, 12 Nov 2007 10:58:07 PST Jordan Golson http://valleywag.com/index.php?op=postcommentfeed&postId=321659&view=rss&microfeed=true
<![CDATA[ IBM patents way to make money on patents ]]> IBM LogoWe were joking when we wrote about Amazon.com CEO Jeff Bezos' one-click patent system for taking out obvious patents. IBM — which holds more patents than anyone — just submitted an idea for "a system and methods for extracting value from a portfolio of assets, for example a patent portfolio." IBM pictures a system for purchasing licensing rights "like fire insurance." In other words, companies could buy the rights to a patent portfolio like IBM's as a legal shield against patent trolls. OK, but will we be able to do it with one click? (Photo by AP/Mark Lennihan)

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Tue, 23 Oct 2007 16:00:51 PDT Jordan Golson http://valleywag.com/index.php?op=postcommentfeed&postId=314244&view=rss&microfeed=true
<![CDATA[ Apple now worth more than IBM ]]> Apple is the new StarbucksAfter Apple's phenomenal earnings report this afternoon, AAPL is up over 7 percent in after hours trading to $186.02. This marks Apple's market cap at $161.8 billion — above IBM ($154.23 billion) for the first time ever. Feeling a little blue, IBM? (Image by sarahbaker)

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Mon, 22 Oct 2007 18:30:45 PDT Jordan Golson http://valleywag.com/index.php?op=postcommentfeed&postId=313771&view=rss&microfeed=true
<![CDATA[ IBM wants to sell you a chimera ]]> As mascots go, I wouldn't have picked a cowducken. But that's what IBM is using to sell its Lotus Notes software. A marketing campaign with the slogan "Create Simplicity" lets you mix and match animal parts as a metaphor for its all-in-one office software. The unwieldy chimeras make me think of a hideous mound of software with poorly matched parts — probably not what IBM was going for. ]]> Wed, 10 Oct 2007 14:39:54 PDT Nick Douglas http://valleywag.com/index.php?op=postcommentfeed&postId=309424&view=rss&microfeed=true <![CDATA[ "As the 3D Internet becomes more integrated ... ]]> "As the 3D Internet becomes more integrated with the current Web, we see users demanding more from these environments and desiring virtual worlds that are fit for business," says IBM's VP of digital convergence, Colin Parris, while discussing his company's partnership with Linden Lab. In other words, Second Life isn't up to snuff, and Big Blue wants to handle the upgrade. [Worlds in Motion]

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Wed, 10 Oct 2007 13:12:34 PDT Mary Jane Irwin http://valleywag.com/index.php?op=postcommentfeed&postId=309370&view=rss&microfeed=true
<![CDATA[ Google and IBM have partnered to help teach ... ]]> Google and IBM have partnered to help teach computer-science students how to program for computing "clusters" — the large arrays of networked servers that run Google and that IBM hopes to sell to customers. Do-gooding educational philanthropy, or a scheme to get universities to sign up the student body for on-the-job training specifically designed for a career at Google? Why, a bit of both. [Google]

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Wed, 10 Oct 2007 12:37:05 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=309352&view=rss&microfeed=true
<![CDATA[ SCO, a company which once claimed to own ... ]]> delisted from the exchange. Refusing to admit the fight is over, SCO will appeal the delisting. But with its cases against IBM and Novell in tatters, a bankruptcy filing, and dwindling cash reserves, the persistent litigator is unlikely to reverse Nasdaq's decision, which comes after after earlier warnings from the exchange. ]]> Thu, 20 Sep 2007 12:57:41 PDT Tim Faulkner http://valleywag.com/index.php?op=postcommentfeed&postId=302086&view=rss&microfeed=true <![CDATA[ Italian IBM workers, angered by a $1,377-a-year ... ]]> Italian IBM workers, angered by a $1,377-a-year salary trim, will be taking their unrest to the virtual streets on September 25. The grand plan is to converge on IBM's Second Life campus. Of course. If there's any way to raise awareness for your cause, it's in a virtual world where you aren't actually disrupting anything. [Boing Boing]

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Tue, 18 Sep 2007 12:05:13 PDT Mary Jane Irwin http://valleywag.com/index.php?op=postcommentfeed&postId=301058&view=rss&microfeed=true
<![CDATA[ IBM marketers seem to be buying into the ... ]]> IBM marketers seem to be buying into the Second Life marketing slogan, "Engage." It's now staffing its virtual business center 24 hours a day during the working week. One hopes they're using cheap offshore labor, as we really don't want to meet people willing to work a graveyard shift in Second Life. [Virtual Worlds News]

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Thu, 23 Aug 2007 13:30:53 PDT Mary Jane Irwin http://valleywag.com/index.php?op=postcommentfeed&postId=292771&view=rss&microfeed=true