International Business Machines Corp. (NYSE:IBM) said that it was able to assemble a PC with the thinnest elements surrounding the seven nanometers wide. That means that its capability would manifold four times than the currently used chips. Basically, the company packed more transistors into the same space implying that the information could travel in quick time among those transistors. The tech firm believes that the development highlighted the law of Moore’s.
Leap Forward
International Business Machines Corp. (NYSE:IBM)’s latest efforts were hailed as a big forward step and proved that semiconductors would be able to enhance its performance. An investigator of the chip business, Patrick Moorhead, responded by saying that Intel Corporation (NASDAQ:INTC) has already done the same thing. He said that Intel has not disclosed it to the public.
IBM’s move could mean that Intel will have to face one more serious competitor in the segment. That will suggest that there will not be an easy going for Intel and the competitive environment will keep the pricing under check. Moorhead said that the chipmaker has been ahead on transistors for one and half or two decades. However, the company was dropping behind the schedule for a number of reasons.
One Year Back
A year ago, International Business Machines Corp. (NYSE:IBM) acquired some chip plants from Globalfoundries Inc. for $1.5 billion. That allowed the technology company to explore. The segment is an extensive business of exploration. According to Big Blue, the company might license its fresh seven nanometer innovation to different sellers. That included Samsung, GlobalFoundries and others.
Moorhead said that the chip will not reach the market for several years from now. That was because the market has got to consume both 14, as well as, 10 nanometers. In any case, International Business Machines Corp. (NYSE:IBM)’s move will put additional pressure on Intel Corporation (NASDAQ:INTC). At the same time, it is an additional avenue of revenue generation for the technology firm.
International Business Machines Corporation, incorporated on June 16, 1911, is a technology company. The Company operates five business segments: Global Technology Services (GTC) and Global Business Services (GBS), Software, Systems and Technology (STG), and Global Financing. Global Technology Services (GTS) primarily provides IT infrastructure and business process services.
Global Technology Services
The Company’s GTC segment’s services include Strategic Outsourcing, Global Process Services, Integrated Technology Services, Cloud and Technology Support Services (Maintenance Services). Strategic Outsourcing delivers IT outsourcing services. Strategic Outsourcing, which includes Global Process Services, delivers a range of offerings, including processing platforms and business process outsourcing. Integrated Technology Services delivers a portfolio of project-based and managed services. Cloud delivers a set of cloud services ranging from assisting clients with building their own private clouds, to building managed clouds, and allowing clients to leverage standardized cloud infrastructure services from the SoftLayer and Cloud Managed Services offerings. Technology Support Services (Maintenance Services) delivers a line of support services from product maintenance through solution support.
Global Business Services
The Company’s GBS segment offers its services across two primary business areas: Consulting and Systems Integration and Application Management Services. Consulting and Systems Integration delivers solutions in Strategy and Transformation, Application Innovation Services, Enterprise Applications and Smarter Analytics. Application Management Services delivers application management, maintenance and support services for packaged software, as well as custom and legacy applications.
Software
The Company’s Software segment consists primarily of middleware and operating systems software. Middleware software enables clients to integrate systems, processes and applications across a standard software platform. Software includes WebSphere, Information Management, Watson Solutions, Tivoli, Workforce Solutions, Rational and Mobile.
Systems and Technology
The Company’s STG segment provides clients with infrastructure technologies. In addition, STG provides semiconductor technology, products and packaging solutions for IBM’s own advanced technology needs. STG includes Servers, a range of high-performance systems that address capacity, security, speed and compute power needs for businesses, organizations and technical computing applications; Storage, which offers a range of software defined storage solutions, disk and tape storage systems and Flash storage and solutions, and Technology.
Global Financing
The Company’s Global Financing segment provides financing solutions for products or services that are critical to the end users’ business operations. These financing contracts are entered into after a credit evaluation and are secured by legal contracts. Global Financing includes Client Financing, which offers lease and loan financing to end-users and internal clients for terms up to seven years; Commercial Financing, which offers short-term inventory and accounts receivable financing to dealers and remarketers of IBM and OEM products, and Remanufacturing and Remarketing. Systems and Technology may also sell the equipment that it purchases from Global Financing to external clients.
The Company competes with Accenture, Amazon.com, Inc., Computer Sciences Corporation, Fujitsu, Google Inc., Hewlett-Packard Company, Microsoft Corporation, CA, Inc., Oracle Corporation, Salesforce.com, SAP, Cisco Systems, Inc., Dell, Inc., EMC Corporation, Amazon Web Services and General Electric Company.
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