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Usenet Posted 22 years ago
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IBM's huge mistake
Off-topic or not, this is from an article in today's Wall Street Journal, on-line. I found it interesting, not that there's much new in it.
In 1980, International Business Machines was rushing to get its first personal computer out the door so it could play catch-up to the likes of Apple and Commodore. Big Blue was in such a cracking hurry, in fact, that it outsourced its new machine's soul: Intel would make the chips, and Microsoft would make the operating system. (To make a long story very short, Microsoft wound up with the gig after negotiations between IBM and Digital Research's Gary Kildall broke down, as summarized by the Bill Gates kiss-off that "Gary went flying." But that's another tale.)
Microsoft's Mr. Gates saw that personal computers were going to be commodities and the operating system that ran them would be gold. Microsoft cobbled together an operating system and sold it to IBM for a reported $80,000 and no royalties, but kept the right to license the operating system to other PC makers. Within a few years makers of "clone PCs" running that operating system were dissolving IBM's share of the PC market and Microsoft and Intel were building empires.
Oracle's Larry Ellison has called IBM's miscalculation "the single worst mistake in the history of enterprise on earth," and it'll be discussed in business schools until the sun goes dark. But the last domino set in motion by that mistake is only now just falling: IBM is reportedly in talks with China's Lenovo Group and another company about selling its PC business.
Charles Riggs
They are no accented letters in my email address
In 1980, International Business Machines was rushing to get its first personal computer out the door so it could play catch-up to the likes of Apple and Commodore. Big Blue was in such a cracking hurry, in fact, that it outsourced its new machine's soul: Intel would make the chips, and Microsoft would make the operating system. (To make a long story very short, Microsoft wound up with the gig after negotiations between IBM and Digital Research's Gary Kildall broke down, as summarized by the Bill Gates kiss-off that "Gary went flying." But that's another tale.)
Microsoft's Mr. Gates saw that personal computers were going to be commodities and the operating system that ran them would be gold. Microsoft cobbled together an operating system and sold it to IBM for a reported $80,000 and no royalties, but kept the right to license the operating system to other PC makers. Within a few years makers of "clone PCs" running that operating system were dissolving IBM's share of the PC market and Microsoft and Intel were building empires.
Oracle's Larry Ellison has called IBM's miscalculation "the single worst mistake in the history of enterprise on earth," and it'll be discussed in business schools until the sun goes dark. But the last domino set in motion by that mistake is only now just falling: IBM is reportedly in talks with China's Lenovo Group and another company about selling its PC business.
Charles Riggs
They are no accented letters in my email address
Top answer
I guess that's how business goes. You get the idea, make some money, then roll on. The opposite example is Apple.
- I guess that's how business goes.
- You get the idea, make some money, then roll on.
- The opposite example is Apple.
- The refused to license clone Macintosh.
- See where they wind up today?
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95 Answers
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I guess that's how business goes. You get the idea, make some money, then roll on. The opposite example is Apple. The refused to license clone Macintosh. See where they wind up today?
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[nq:1]Oracle's Larry Ellison has called IBM's miscalculation "the single worst mistake in the history of enterprise on earth," and it'll ... now just falling: IBM is reportedly in talks with China's Lenovo Group and another company about selling its PC business.[/nq]
And then...
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And then...
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[nq:1]I guess that's how business goes. You get the idea, make some money, then roll on. The opposite example is Apple. The refused to license clone Macintosh. See where they wind up today?[/nq]
They had a different problem: arrogance. They felt that they had a better product and could therefore charge more money. Consumers wanted something that worked and was affordable.
Around the time t
They had a different problem: arrogance. They felt that they had a better product and could therefore charge more money. Consumers wanted something that worked and was affordable.
Around the time t
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[nq:1]I guess that's how business goes. You get the idea, make some money, then roll on. The opposite example is Apple. The refused to license clone Macintosh. See where they wind up today?[/nq]
I used to have a Mac clone. We took it to the curb just a few months ago, in fact.
SML
I used to have a Mac clone. We took it to the curb just a few months ago, in fact.
SML
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[nq:2]I guess that's how business goes. You get the idea, ... to license clone Macintosh. See where they wind up today?[/nq]
[nq:1]I used to have a Mac clone. We took it to the curb just a few months ago, in fact.[/nq]
When Steven Jobs finally realized the 'right' way, he already missed the train. The pitiful market share left for Machintosh leaves no possibility for any profit from clonin
[nq:1]I used to have a Mac clone. We took it to the curb just a few months ago, in fact.[/nq]
When Steven Jobs finally realized the 'right' way, he already missed the train. The pitiful market share left for Machintosh leaves no possibility for any profit from clonin
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[nq:2]I used to have a Mac clone. We took it to the curb just a few months ago, in fact.[/nq]
[nq:1]When Steven Jobs finally realized the 'right' way, he already missed the train. The pitiful market share left for Machintosh leaves no possibility for any profit from cloning it. On the other hand, how come Apple's stock keeps soaring these days is totally beyound me.[/nq]
The popularity of
[nq:1]When Steven Jobs finally realized the 'right' way, he already missed the train. The pitiful market share left for Machintosh leaves no possibility for any profit from cloning it. On the other hand, how come Apple's stock keeps soaring these days is totally beyound me.[/nq]
The popularity of
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[nq:2]I used to have a Mac clone. We took it to the curb just a few months ago, in fact.[/nq]
[nq:1]When Steven Jobs finally realized the 'right' way, he already missed the train. The pitiful market share left for Machintosh leaves no possibility for any profit from cloning it. On the other hand, how come Apple's stock keeps soaring these days is totally beyound me.[/nq]
Their MP3 players
[nq:1]When Steven Jobs finally realized the 'right' way, he already missed the train. The pitiful market share left for Machintosh leaves no possibility for any profit from cloning it. On the other hand, how come Apple's stock keeps soaring these days is totally beyound me.[/nq]
Their MP3 players
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[nq:2]When Steven Jobs finally realized the 'right' way, he already ... Apple's stock keeps soaring these days is totally beyound me.[/nq]
[nq:1]The popularity of the iPod is evidently leading to an increase in sales of Macintoshes. Even I've toyed with getting a Mac, and rumor has it that Joe Manfre already has one.[/nq]
What I heard, and what Apple said was that their iPod/iTune t
[nq:1]The popularity of the iPod is evidently leading to an increase in sales of Macintoshes. Even I've toyed with getting a Mac, and rumor has it that Joe Manfre already has one.[/nq]
What I heard, and what Apple said was that their iPod/iTune t
00
[nq:2]I guess that's how business goes. You get the idea, ... to license clone Macintosh. See where they wind up today?[/nq]
[nq:1]They had a different problem: arrogance. They felt that they had a better product and could therefore charge more money. ... their market and the video market seemed obvious to me. I don't know how Steve Jobs could have missed it.[/nq]
Yes, I consider Apple's m
[nq:1]They had a different problem: arrogance. They felt that they had a better product and could therefore charge more money. ... their market and the video market seemed obvious to me. I don't know how Steve Jobs could have missed it.[/nq]
Yes, I consider Apple's m
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[nq:2]When Steven Jobs finally realized the 'right' way, he already ... Apple's stock keeps soaring these days is totally beyound me.[/nq]
[nq:1]The popularity of the iPod is evidently leading to an increase in sales of Macintoshes. Even I've toyed with getting a Mac, and rumor has it that Joe Manfre already has one.[/nq]
The only reason I haven't is all the great free and low-cost
[nq:1]The popularity of the iPod is evidently leading to an increase in sales of Macintoshes. Even I've toyed with getting a Mac, and rumor has it that Joe Manfre already has one.[/nq]
The only reason I haven't is all the great free and low-cost
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