Ibm Eclipse Case Study

Only available on StudyMode
  • Download(s): 96
  • Published: May 17, 2013
Read full document
Text Preview
1. Why was the creation of an independent IBM software group [SWG] strategically important? Note: this discussion should include some view of hardware as well. The creation of an independent IBM software group (SWG) was strategically important for the following reasons: a) A category of software named “middleware” was emerging in the mid-‘90s. At this point SWG abetted IBM to emerge in the middleware market. b) SWG was also strategically important for IBM to help focus its software activities and prepare for a new age in distributed networked computing. c) SWG enabled IBM to develop middleware for multiple Oss’ and generate software revenues from as many Oss’ as possible, including Windows and UNIX. As a result SWG defeated the traditionally stronger hardware group for the first time in the history of the company with high profit margins. SWG creation was also important due to the growing commoditization of hardware business. d) As “e-Business” was becoming hot cake in the mid-‘90s, SWG helped IBM to strongly focus on building integrated solutions that exploit other IBM software in order to maximize performance or to take advantage of software synergies. With formation of SWG and other acquisitions, IBM targeted several product offerings. Software Group has been the force behind herding the multiple business areas within the software group to have a common set of underlying services. e) SWG’s adoption of new platform would reduce the software development costs, enhance interoperability and usability, and make porting on other OSs’ easy. It would also encourage partners and ISVs to extend the platform with complementary products and technologies. This platform will increase the ecosystem of IBM products and thus increase IBM’s market reach. 2) Is porting an exponential expense problem in the current situation? What are the implications? Yes, porting is an exponential expense problem in the current situation. Porting significantly increased the development and support costs. In order to port a new version of a product to a new operating system, it was necessary to rewrite a fraction of software, acquire hardware to test the products, develop new training materials and upgrade the skill set of support and sales staff. Hunting for skilled professionals with application development experience across multiple OSs’ was extremely challenging. Porting expenses also added to the cost of improving the functionality of existing products. ISVs were very unhappy as they had to port their complementary products to multiple OSs’. ISVs did not have technical capabilities to build complementary products and solutions on top of it due to IBM's diverse product portfolio. Smaller ISVs in particular were unable to bear the costing of porting. Estimates suggested that porting an application to another OS would increase R&D by 25%, technical support by 25% and sales and marketing by 5%. This extra cost can be approximated to 6.46% of total revenues per OS. 3. Is Java a help here? What are the limitations that may limit its use? Developing applications that run on multiple operating systems and ease of porting applications from OS to another, is one of the critical feature that a programming language should provide. Java, developed by Sun Microsystems, helped in making this possible, by the introduction of an abstraction layer, called Java Virtual machine (JVM). Java applications, once...
tracking img