SamuelPalmisano
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IBM's Samuel J. Palmisano: we sold PC business due to lack of innovative opportunities
Departing IBM head honcho Samuel J. Palmisano has been known to say some outlandish things, but there's nothing comical about the information divulged in a new piece surrounding his legacy in The New York Times. Outside of looking into the details of how IBM become one of the world's most boring, highly profitable outfits, there's plenty of fascinating nuggets to be had. For one, he focused intently on getting out of "low-margin businesses that were fading," and not surprisingly, the outfit's personal computer business was first on the chopping block. Reportedly, he saw a lack of opportunity for innovation (at least "in the corporate market"), and felt that the "hub of innovation would shift to services and software." As if a prophet, just about everything he expected has come to pass. The article explains that the jarring sale of its PC business was no easy thing to decide upon, and he even affirms that he "deflected overtures from Dell and private equity firms, preferring the sale to a company in China for strategic reasons." As the story goes, China wants its corporations to have global reach, and by helping with that, IBM "enhanced its stature in the lucrative Chinese market, where the government still steers business." Trust us -- there's far more where this came from in the source link below. [Thanks, Theo]
IBM announces Virginia Rometty as new CEO
IBM's board of directors have announced that Virginia M. Rometty will be taking over as CEO of the company in 2012, succeeding current chief Samuel Palmisano. Palmisano will stay on as chairman of the board, but at the end of the year will hand over the reins to Rometty who will become one of a few, but growing number of female chief executives (alongside Meg Whitman) in the tech industry. During her roughly decade long tenure with the company she has spearheaded the push into the services industry and in 2009 became senior vice president of sales, marketing and strategy, leading the charge into markets like China and India. The 54-year-old Rometty will look to continue Palmisano's success, which has seen IBM become the second most valuable tech company in the world, just ahead of Microsoft and right behind Apple. Check out the full PR after the break.
CE-Oh no he didn't!: IBM's Palmisano says HP 'used to be' an inventive company
The finest putdowns are usually the simplest. To wit, check out IBM's Chief Executive Trashtalker, Samuel Palmisano, whose elegant use of the past tense relegates HP's current status to that of a mere has-been innovator. Now, says Sam, HP is forced to acquire new companies just to keep up, thanks in part to Mark Hurd's slashing of investment in research and development. Speaking of Hurd, Palmisano also thinks HP failed its investors by handing him a fat severance package as he promptly jumped ship to Larry Ellison's Oracle loveboat. Another reason why Palmisano isn't worried about HP is that he sees the PC era as already over, describing IBM's sale of its PC business to Lenovo as an act of foresight, and adding that he "couldn't give it away today." Clearly they don't mince their words over at International Business Machines.
