The Fed suckered IBM into a failing cloud strategy?

Ginni_RomettyEconomist David Stockman, who is probably best known for being President Reagan’s budget director back in the era of voodoo economics, has been particularly outspoken about IBM as a poster child for bad policy on the part of the U.S. Federal Reserve. How this would be isn’t immediately obvious but I think is worth exploring because IBM is far from the only company so afflicted. There’s an important effect here to be understood about corporate motivations and their consequences.

So I’ll begin with a story. Almost 40 years ago there was a study I worked on at Stanford’s Institute for Communication Research having to do with helping farmers in Kentucky be […]

By |July 25th, 2014|2014, Business, cloud computing, Companies, Economy, Finance, Government, Industry|63 Comments
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IBM and Apple just not that big a deal

apple-ibmGiven that I used to work for Apple and have lately been quite critical of IBM, readers are wondering what I think of Tuesday’s announcement of an iOS partnership of sorts between Apple and IBM. I think it makes good sense for both companies but isn’t a slam dunk for either.

There are three aspects to this deal — hardware, apps, and cloud services. For Apple the deal presents primarily a new distribution channel for iPhones and iPads. Apple can always use new channels, especially if they hold inventory and support customers who aren’t price-sensitive. Apple’s primary goal is to simply get more devices inside Big Business and this is a good way […]

By |July 16th, 2014|2014, cloud computing, Companies, mobile technology, Phones|90 Comments
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The Coming Microsoft Cultural Revolution

Screen Shot 2014-07-15 at 12.34.41 AMLast week Microsoft CEO Satya Nadella took another step in redefining his company for the post-Gates/Ballmer era, sending a 3100-word positioning memo to every Microsoft employee and to the world in general. I found it a fascinating document for many reasons, some of them even intended by Nadella, who still has quite a ways to go to legitimately turn Microsoft in the right direction.

We’re seeing a lot of this — companies trying to talk their way into continued technology leadership. Well talk is cheap, and sometimes that’s the major point: it can be far easier to temporarily move customers and markets through the art of […]

By |July 15th, 2014|2014, cloud computing, Companies, Industry, mobile technology, Software, Technology|107 Comments
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Bitcoin quietly goes legit

bitcoin-logo-3dThe U.S. Marshals Service doesn’t normally make economic policy but this week they apparently did so by auctioning 30,000 Bitcoins, a crypto currency I have written about before. This auction effectively legitimizes Bitcoins as part of the world economy. Am I the only one to notice this?

My first column on this subject was a cautionary tale pointing out the two great areas of vulnerability for Bitcoin: 1) the US Government might declare Bitcoins illegal, and; 2) someone might gain control of a majority of Bitcoins in which case their value could be manipulated. While number two is still theoretically possible it becomes less likely every day. And number […]

By |July 2nd, 2014|2014, Banks, Economy, Finance, Government, Privacy and Security, Venture Capital|61 Comments
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The Secret of Google X

Sergey“All politics is local,” said House Speaker Tipp O’Neill, meaning that every politician has to consider the effect that his or her positions will have on voters. What makes perfect sense on a national stage might be a disaster back in the district, where the actual voters live. And so it is, too, with big companies, where local impact is sometimes more important than national or international. Sometimes, in fact, companies can be completely re-routed solely to please or affect a single executive. I believe we are seeing precisely that right now at Google concerning Google X.

Google X is that division of the search giant responsible for self-driving cars, Google Glass, and […]

By |June 27th, 2014|2014, Companies, People, Product Development, Technology|49 Comments
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