IBM Ups the Ante Against Oracle and Hewlett-Packard
It seems IBM (NYSE:IBM) is stepping up its game against other tech giants like Oracle (NASDAQ:ORCL), SAP (NYSE:SAP), and Hewlett-Packard (NYSE:HPQ) this month. New products and arrangements could take away some market share as the 20-year U.S. patent champion takes advantage of some of its might.
Word came out Monday that IBM was in agreements with McDonald’s (NYSE:MCD) to implement a social network for the fast-food chain’s employees in South Africa — a system that would reach some 8,000 McDonald’s employees and would allow them to communicate and arrange business matters. South Africa could help the product get footing to later challenge the web-based solutions offered by companies like SAP and Oracle, perhaps in larger markets like the U.S.
Tuesday, IBM announced another big move to shore up its business — this time in hardware. Oracle and Hewlett-Packard both make servers for enterprises and have a strong position in the market for that sort of resource.
Now, IBM wants to offer its own Power and Storage Systems business to the market, and it’s got its eyes on small- and medium-sized businesses. The company will be offering new servers at competitive prices, starting with the Power Express 710 at just less than $6000…
“Big data and cloud technologies that were once affordable to large enterprises are not available to the masses,” according to Rod Adkins, a Senior Vice President at IBM. The company may be able to take advantage of the relative newness of the technology in the small- and medium-sized business market.
These new products from IBM may not have a significant impact on the company, to start — shares were trading slightly down Tuesday afternoon — but the effect on the market could change as IBM increases the level of competition.
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