After guaranteeing a budget of at least one billion dollars on their information management technologies, IBM has succeeded in multiplying that nearly six times over. In an effort to enhance the company’s ability to analyze data and lessen the chance of risky decisions they have been able to create several new business opportunities. This investment seems to be the key for the company to be able to dig through the mounds of information they have amassed over time since reportedly nearly 75% of the worlds information comes from the reapplication of existing data.
IBM also announced an update on Monday about the development of the 2007 acquisition of Solid Information Technology. The acquirement of this company has permitted the development of an in-memory database that allows for IBM’s relational database to grow exponentially. This in turn permits them to accelerate the development some of their servers along with those of some of their competitors such as Oracle and Sybase. The update that is being used for solidDB Universal Cache is being seen as “an industry first” since its relational, in-memory database has increased the development of their performance ten times over. Some of the newly developed data that has come from the investment of billions of dollars has allowed International Business Machines to push for the next version of solidDB and further support for the Microsoft SQL Server which should become available in 2009.
This investment has also improved its InfoSphere software which allows for the server to assist customers in bringing a variety of information from several different systems into one easy to use console. This superior technology is aimed at small and medium sized businesses with a fair amount of information to handle.
As result of the failing economy, this many positive announcements for one company is unheard of, but this computer and information development company has several more. A number of updates have been made to their content management portfolio which will help several fields of interest. This technology could be used in order to analyze the performance of finance, pharmaceuticals, internal controls, sales and many others.
Furthermore, IBM’s investment and investigation of innovative technology has aided them in avoiding the financial turmoil many IT vendors are suffering through. Instead of reporting a loss or even just unsatisfactory earnings like most other companies, they have reported an increase in revenue by nearly 12% in software revenue. Their management revenue is doing an even better job at a reported 26% increase. Apparently since spending billions of dollars has helped them in the past, IBM is not planning on cutting back or slowing down at all. They intend on continuing the investments they have been making in order to support the growth of their company.
1 comment:
While positive news postings on IBM is normally a good sign for a business, I don't see IBM's idea of continuous investment in IT as such a good idea in the current economy. Currently their stock has gone down almost 33% since the summer. Since almost all stocks have gone down considerably in that time period, I am not worried for IBM because of that, but because billions of dollars in expansion is not exactly a safe thing to do during times like these.
Overall I am personally against companies spending such massive amounts of money on IT, but I especially am against this. I would rather see them become conservative and instead choose to work on their existing techonologies to improve upon them. Who knows what the future will hold for financial companies, banks, and investment groups. But I would rather see them invest such money in HR or in becoming efficient with what they already have. Because I personally think billions of dollars in IT will be worth less in our future economy.
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