The software side of Intel

TalkBack 1 of 9:

Next »

• Thread View
• Flat View

Impressive profit, IBM!

From the article:

IBM increasingly sees its software division as a strategic weapon to drive both hardware and consulting sales. It's also a source of profits. The company sold $28 billion worth of hardware in 2003, generating profits of just under $8 billion, while its software group generated sales of just over $14 billion, but netted $12 billion in profits, according to IBM's annual report.

That's better than 85% profitability on software, Microsoft territory.
But Microsoft makes its money on selling a few products to a lot of people. Makes costs easy to amortize.
IBM can't be selling any particular software package to too many people. And we know some of their software is given away to clinch the sale.

Must mean that, unlike Microsoft, their software costs almost nothing to produce.
How could that possibly happen? Or, given they must need thousands of hard working programmers, are they paying slave wages?

Are we dealing with another Nike here? Should we consider boycotting IBM until they pay their programmers decent wages? I hope everyone concerned with corporate social responsibilities notices this.

Posted by: Anton Philidor   Posted on: 06/30/04 You are currently: a Guest | Members login | Terms of Use

Alert moderator to an offensive message

Subscribe to this discussion via Email or RSS

SponsoredWhite Papers, Webcasts, and Downloads

• Email Security and Archiving - Clearer in the Cloud Google The time is NOW for businesses and organizations of all sizes to implement ... Download Now
• The Impact of Virtualization Software on Operating Environments VMware Today's use of virtualization technology allows IT professionals to ... Download Now
• Virtualization: Architectural Considerations And Other Evaluation Criteria VMware Of the many approaches to x86 systems virtualization available in the ... Download Now