Ibm Eclipse Case Study

Eclipse (software), Java (software platform), Sun Microsystems

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...
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