IBM to resell products from Storage Technology

Article Abstract:

IBM has contracted to purchase and market the products of Storage Technology (StorageTek), a longtime competitor that has managed to maintain a technological edge over much larger IBM. StorageTek and IBM will combine resources for the development of coming StorageTek products, and IBM will assume responsibility for marketing both companies' lines of mainframe storage devices. Analysts suggest that StorageTek will benefit substantially from the agreement, and the company's stock price rose 13% in trading after the contract was announced. StorageTek is expected to gain from the leverage of IBM's superior salesforce, increasing its market share while also diminishing the profit margins of its products. IBM is expected to benefit primarily from access to StorageTek's range of technology and from the attrition of one more competitor.

Computer Storage Device Manufacturing, Memories & Storage Devices, Computer storage devices, Contracts, Computer peripherals industry, Cooperative agreement for product marketing, Storage Technology Corp., STK, Contract agreement, Cooperative agreement for product development, Marketing agreements

---

How do joint ventures go wrong? Ask Kaleida

Article Abstract:

Apple Computer and IBM ended their joint venture Kaleida Labs Inc in Nov 1995, and former Kaleida boss Michael Braun said that flaws endemic to corporate joint ventures are to blame. According to Braun, the marketing components of parent companies are not motivated to push joint venture products, but parental development departments expect full control over them. Apple and IBM apparently stymied Kaleida's efforts to buy or create software development tools that would enable third party developers to work with Kaleida's ScriptX language because each of the parent companies were developing similar software development tools of their own. Other perils faced by corporate joint ventures include profit and top talent mining by parent companies and unrealistic delivery timetables.

Joint-Venture Management, Joint ventures, AAPL, Company joint venture, Apple Inc., Kaleida Labs Inc.

---

IBM shuffles job, elevating PC executive

Article Abstract:

IBM CEO Louis V. Gerstner has promoted Samuel Palmisano to a senior VP position in a reorganizational move that indicates which executives are being considered as Gerstner's eventual replacement. The 44 year old Palmisano will be the youngest top executive at IBM and will have control over a new division, overseeing research and manufacturing. His title will be changed to senior VP and group executive, and he will be joining the Corporate Executive Committee, IBM's top policy-setting body. In the reorganization no executives were replaced our lost their positions. The move appears to be an attempt by Gerstner to reinvigorate the company. IBM experienced solid financial results in its second quarter but lacked new growth.

Electronic computers, Computers, Electronic Computer Manufacturing, Human resource management, Company restructuring/company reorganization, Reorganization and restructuring, Company personnel management, Company executive, Computer executives

Similar abstracts:

• Abstracts: IBM to form consumer-products unit with aim of rejuvenating Aptiva line. IBM tries, and fails, to fix PC business
• Abstracts: Informix revamps database technology; firm takes novel approach to handling multimedia. Software makers are likely to report generally strong earnings for quarter
• Abstracts: Three newbies provide a primer for the Internet. A posting on Internet is ruled to be illegal
• Abstracts: His mission: first revival for Prodigy, then buyout. America Online reaches big marketing deal with Tel-Save
• Abstracts: Federal budget: stopgap bill averts federal shutdown. Partial government shutdown ends

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.