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Complacency IBM’s biggest danger, says analyst

Anushkar Mohinani | June 15, 2011
As the tech giant prepares for its global centennial celebration.

SINGAPORE, 15 JUNE 2011 – While IBM gears up to celebrate its 100 years of progress, it can’t overlook the significant missteps made in the past that negatively impacted its influence and even its survival, said Ovum’s chief analyst Carter Lusher.

"IBM is one of a handful of companies that has shaped the global information technology (IT) industry. However, one of the biggest dangers for the vendor is complacency," said Lusher.

IBM also faces a plethora of other challenges, including disruption by technology and competition, consumerisation of IT, government regulation pushed in part by non-governmental organisations, and obsession with financial results that cause it to fail other stakeholders, he added.

“While we celebrate IBM’s centenary, it is critical to think about how this vendor will adapt in the future,” said Lusher. Some of the potential challenges it will face over the next 20 years are three CEO cycles, countless changes in the tech fad du jour, climate change, politicians and NGOs wanting IBM to do things that make no business sense, according to him

Lusher advised that IBM needs to focus on the ‘international’ and ‘business’ parts of its name. “It thrives when it focuses on the business needs and opportunities of its customers,” he said.

 

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