IBM, Microsoft, HP, Apple, Sun Microsystems Tracie Holthaus Zack Lucas Lesley Betts Dominic Magne-Acebo.

IBM, Microsoft, HP, Apple, Sun Microsystems

Tracie HolthausZack LucasLesley BettsDominic Magne-Acebo

International Business Models (IBM) --- Overview

IBM is aligned around a single, focused business model: innovation

Develops processes and operations across a variety of industries, and invents and applies technology to help solve its clients' business and competitive problems.

Leads the development of state-of-the-art technologies, and the products and service offerings built around them.

IBM --- Overview

World's largest information technology company. Measured by revenue, IBM is the biggest provider of IT services, hardware and financing, and second in software.

Mission Statement“At IBM, we strive to lead in the creation, development and manufacture of the industry's most advanced information technologies, including computer systems, software, networking systems, storage devices and microelectronics. We translate these advanced technologies into value for our customers through our professional solutions and services businesses worldwide.”

IBM --- Overview

Who they work with:

IBM's clients include many different kinds of enterprises, from sole proprietorships to the world's largest organizations, governments and companies representing every major industry and endeavor.

What they do:

HardwareSoftwareServicesFinancingResearchTechnology

IBM --- Financial and Business Performance

Values in Millions

Year Net Income1996 5,409.00$ 1997 6,073.00$ 1998 6,308.00$ 1999 7,692.00$ 2000 8,073.00$ 2001 7,713.00$ 2002 3,579.00$ 2003 7,583.00$ 2004 8,430.00$ 2005 7,934.00$

IBM --- Financial & Business Performance

IBM Stock Prices from 1996-2006

IBM faired much better than other high tech companies during the .com boom and bust.

Stock prices were at an all time high in 2000. They dropped in 2001 because of the bust, but the stock was quick to begin rising again in 2002.

IBM --- .com boom and bust

How did they get through it? IBM is a huge and diverse company. IBM had more than enough revenue to

compensate for losses. IBM had massively restructured their

company in the early/mid 1990s which prepared them for the drastic changes.

IBM --- Future

“Project Fastball”

- IBM has scored a fundamental performance breakthrough in

the way that massive computer networks access and share information.

IBM --- Future

IBM’s strategic priorities for 2006 include:- Capitalizing on technological, business and social trends and the need of enterprises to innovate in addressing those trends;- Maintaining market-share leadership in systems, middleware software and services, as a platform to drive growth;- Focusing investment and resources on emerging growth areas, including Business Performance Transformation Services and emerging countries;- Continuing the global integration of IBM, driving productivity gains and higher value in service delivery;- Furthering IBM’s leadership in innovation initiatives, including advanced semiconductor design and development, collaborative intellectual capital, business process expertise and integration, and advanced systems for supercomputing capability—including mainframes and “grid” networks;- Acquiring businesses that contribute strategically to its portfolio, and exiting businesses that no longer support its strategy for innovation and higher value.

Microsoft

Mission Statement “At Microsoft, we work to help people

and businesses throughout the world realize their full potential. This is our mission. Everything we do reflects this mission and the values that make it possible.”

Microsoft---Overview

3 Core Divisions- Platform Products and Services Division,

including the Windows Client Group, Server and Tools Group, and MSN Group

- Business Division, including the Information Worker Group and Microsoft Business Solutions Group

- Entertainment and Devices Group, including the Home and Entertainment Group and the Mobile and Embedded Devices Group

Microsoft---Overview

Products Windows Office Windows Server System Developer Tools Business Solutions Games & Xbox MSN Windows Mobile

Microsoft---Financial/Business Performance

Year Net Income1996 2,195.00$ 1997 3,454.00$ 1998 4,490.00$ 1999 7,785.00$ 2000 9,421.00$ 2001 7,346.00$ 2002 5,355.00$ 2003 7,531.00$ 2004 8,168.00$ 2005 12,254.00$ 2006 6,794.00$ (first quarter)

all values in billionsAll Values in Millions

Microsoft---Financial/Business Performance

• Microsoft followed the same sort of trend as most technology companies during the .com bust. Stock prices were skyrocketing, then in 1999 they peeked and began to fall very fast. They have since come back up some and leveled out.

Microsoft---.com bust

Microsoft got through the .com bust because they had so much money in the bank and a good business plan. They were able to stick to their business plan and push through the tough times.

Microsoft---Future

Windows Vista “We're working to expand the

possibilities for computing every day, by continually improving and advancing our current products and embarking on fundamental research that paves the way for tomorrow's breakthroughs.”

Hewlett Packard

For more than 65 years, HP has combined its ingenuity, engineering prowess and customer focus to help people around the world apply technology in meaningful ways to their business, personal lives, and communities.

HP focuses on creating value and understanding their customers- working side-by-side to jointly develop solutions that make their customers’ experience with technology more simple and manageable.

HP---Overview

HP’s 3 Business Units Personal Systems Group

HP’s leading business and consumer PCs, mobile computing devices and workstations.

Imaging and Printing Group Applies its expertise to inkjet, LaserJet and

Commercial printing, printing supplies, digital photography, and entertainment.

Technology Solutions Group A world class portfolio of business products

including storage and servers, managed services, and software.

HP--- Overview

Products and Services Desktops and workstations Notebooks and Tablet PCs Printing and Multifunction Handhelds and Calculators Monitors and Projectors Fax, Copiers and Scanners Digital Photography Entertainment Storage Servers Supplies and Accessories Networking Software Products

HP---Financial/Business Performance

Values in Millions

Year Net Income1998 2,945.00$ 1999 3,491.00 2000 3,697.00 2001 680.00 2002 (928.00) 2003 2,539.00 2004 3,497.00 2005 2,398.00

HP---Financial/Business Performance

HP pretty much followed the same pattern as the other technology companies. HP peaked in stock prices in 1999 and then stock prices dropped during the .com bust. Since then HP has some what recovered and are starting to level out.

HP---Future

HP is a company fueled by new thinking and unique ideas about creating more valued experiences with technology. HP invests $3.5 Billion dollars each year into Research and Development. HP introduced hardware, software and services

enhancements to its HP StorageWorks portfolio that will help customers consolidate their storage environments.

HP has signed a definitive agreement to acquire OuterBay™, a leading provider of archiving software for enterprise applications and databases.

At the Sundance Film Festival, HP demonstrated the company's most comprehensive digital graphic arts portfolio for printing everything from color postcards to large, outdoor banners.

HP and Hitachi, announced that researchers will conduct joint work on key security and privacy issues.

Apple

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh.

The ultimate goal of Apple is to make money!

Apple’s mission statement is to achieve profitability & a competitive advantage and give users the best computing experience by innovating in hardware, software, and Internet offerings. 

Apple---Overview

Products Hardware Products

Macs, iPods, Power Macs, Mac OS X Server, etc.

Software Products Mac OS, iLife, Quicktime, .mac, Pro Digital

Production Software, etc.

Apple---Financial/Business Performance

Values in Millions

Year Net Income1996 (806.00)$ 1997 (1,045.00) 1998 309.00 1999 601.00 2000 786.00 2001 (25.00) 2002 65.00 2003 69.00 2004 276.00 2005 1,335.00

Apple---Financial/Business Performance

Like the other technology companies, Apple’s stock price fell during the .com bust and then did not grow until they released the iPods. Apple is now starting to plateau and will need to come up with something soon to maintain their stock price.

Apple---Future

Currently Apple is doing well with their profits from the iPods, but are starting to plateau due to the saturation of the market. If Apple is wanting to maintain their current stock and profit they will need to come out with a new innovation otherwise they may be seeing the decline in stock and profits once again.

Sun Microsystems - Overview

Company started in February of 1982

Sun Microsystems, Inc. focuses on providing products and services for network computing.

Now the company offers a wide range of products: Software operating systems, a wide range of servers from entry-level to powerful high end, storage stations

The company says it provides quality customer support on their software and hardware.

Sun Microsystems --- Financial & Business Performance

Sun Microsystems Stock Prices from 1996-2006

Sun Microsystems took a huge hit – loosing nearly 90% of their stock value from .com boom to bust.

Stock prices were near an all time high in 1999, and by 2002 they dropped drastically

Sun Microsystems---Financial/Business Performance

Year Net Income1,997.00$ $ 757,2411,998.00 $ 777,6431,999.00 $ 1,042,5702,000.00 $ 1,133,2132,001.00 $ 1,203,0002,002.00 $ -606,0002,003.00 $ -332,3002,004.00 $ -376,0002,005.00 $ -43,0002,006.00 $ -123,000

Values in Millions

Sun Microsystems - .com boom to bust

Leading supplier of computer servers which fueled the .com boom

Fell victim to the commoditization of the computers – or the .com bust

revenues fell 32 per cent from a record US$18.3 billion in 2001

Their biggest downfall was their slow reaction to fundamental changes in the industry

A few years prior, the companies Sparc microprocessor and Unix-based Solaris operating system were far more powerful than anything else.

One of their biggest problems was the increasing power of the chips from Intel and low-cost operating systems like Linux have improved greatly – this leveled the playing field.

Sun Microsystems – .com boom to bust

Sun Microsystems lagged behind – and lost many contracts when companies decided to upgrade their servers to Linux based instead of staying with Sun’s technologies.

Linux had a huge advantage because it worked well with existing servers using multiple operating systems.

IBM and HP beat Sun Microsystems to offering the low-cost Linux servers and Intel chips. While Sun continued to produce their high cost Sparc and Solaris technology.

Overall their biggest mistake: “being slow to jump on the consulting-business bandwagon”

Sun Microsystems – For The Future

Sun has undergone a number of strategic changes: introducing support for Linux and x86 processors.

The company open sourced the company's Java

Enterprise System components. Open Source Software is software for which the underlying programming code is available to the users so that they may read it, make changes to it, and build new versions of the software incorporating their changes.

Open sourcing of Solaris and other Java Enterprise

System components, the landmark settlement and development agreement with Microsoft.

Sun became the biggest business contributor to the global open source community with donations of 1,600 patents.

Sun Microsystems - The Future: The New T1

Sun is finally listening to its customers, and by via various open source projects. The company is engaging directly with their client.

In mid November, 2005: Sun unveiled UltraSparc T1 servers. Ideal for Web serving and e-commerce applications

The new T1 processors will be price competitive with the x86. It will consume less power, a huge issue to many companies.

The T1 is based on the Sparc instruction set, and software written for the x86 will not work with these new processors.