January 24, 2010

From Hardware to Software and to Hardware

There are two interesting trends for the past 10 years for some big IT companies. On one side, led by IBM, many traditional hardware companies have been transforming themselves from hardware companies to software or service companies. Take the example of IBM. IBM was once one of the largest maker for PC hardware, laptop, monitor, hard drive, etc. Now it has sold almost all of its PC business and becomes one of the largest software and service providers. On the other side, traditional pure software companies like Microsoft and Google are moving into the lower margin hardware area. Isn't it interesting?

Microsoft has already had Zune, XBOX, Surface, Keyboard/Mouse, Webcam, etc. And Google just pushed its Nexus One (http://www.google.com/phone). People are talking when Google is going to have its own Netbook or Smartbook (we will talk about them this week) based on Chrome OS or Android OS (http://infoworld.com/d/mobilize/building-google-smartbook-dream-machine-877). It seems Google is trying to build a platform and challenge Microsoft's Windows. What do you think about Google's move?

More about Chrome http://en.wikipedia.org/wiki/Google_Chrome_OS


Sabrina Lin said...

I think that within any sort of business model, in any break down of type, (retail fashion, jewelry, electronics, etcs.), there needs to be shifts of power so to speak. Economically speaking, there are cycles between companies success' and failures. Microsoft has been a power for so long, that there needs to be a shift. Microsoft even owned Apple at one point, but because of monopoly laws, Microsoft was forced to give it up. Google from the getgo has been some what of an amazing thing. With a better search engine on their side, they began to develop essential software and tools that are use friendly with not as many glitches. With the creation of unlimited (FREE) email space, and things like google docs, chrome, and now an OS for cell phones, google is on the rise to making it's mark in information systems history. They have to keep up and maybe even surpass, the big companies, like IBM, Microsoft, DELL, and Apple, while many of them are still growing. I'm very interested in seeing as how Google will come to surpass these traditional powerhouses. Good Move by Google!

Victoria Rivers said...

I just think that as the need of consumers and the way the economic system works, major companies like IBM have to adjust to what best helps them. Each company in my opinion goes into a cycle to try to re-invent themselves to be more appealing to consumers or try to move toward a different way of business because they feel as though it is going to yield them the highest profit.

Lori Brugh said...

I think that Google would produce a very good smartbook. I would love to see the software that was on it. I have one of the Android Google phones, and i love the way that it is set up. Google is very good at making consumer friendly and easy products. I also think that it would be good for Microsoft to have a little competition. Windows is pretty good, but i would like to see other options for an operating system.