Episode 45: NewsFlash - IBM is Bigger than EMC

I would like to state one thing for the record … IBM is larger than EMC.

Now that we have that settled, you have to check out Chris Preimesberger’s article ( eWeek - IBM Stumbles in Boast About Storage Hardware Market Report ).

I found myself somewhat thrown by the effort IBM put into claiming to be bigger than EMC. Yes, newsflash here, IBM is bigger than EMC! They are bigger in many areas where EMC has little or no focus. Mainframes, tape, servers and the list goes on... The market share report IBM hyped focuses on a relatively random collection of hardware, most of which EMC doesn’t make! 

That aside, size and scale are clearly measures of success in business. Growth is another measure. These factors can provide some degree (but not a total evaluation) of a company’s competitiveness. People recognize that, and customers do look at these measures so our eting teams will try to each put their spin on the markets to their advantage. Fair enough.

But, to me, it seems like IBM is wrapping an extra layer of emotion around anything related to Storage and the Information Infrastructure. For a company that deservedly plays the senior statesman role for the industry, I am both perplexed (and admittedly a bit amused) that IBM comes unraveled when talking about information infrastructure and EMC.

If you look at it strategically – IT is all about “Information.” And, that information -- more and more -- is going to be online, available, virtual, managed, and secure. Now, the fact is here, in these areas, EMC is bigger than IBM and, in almost every area, also growing faster. Yes, we are smaller in mainframes and smaller in tape – I think everyone understands that. We are investing heavily, however, in technologies that we believe will matter in the future.

In either case, I think we are both big enough to be considered “major” IT suppliers so I would simply suggest that you spend time and listen to both of our strategies and judge our commitment and execution around delivering the Information Infrastructure.

To that end, I think Rob Enderle nailed it in this Techworld piece from a few months ago http://www.technewsworld.com/story/56224.htmlTechNewsWorld. His call is that EMC is credibly establishing itself as the fourth big power in the tech market by adding a fourth IT pillar alongside software, hardware and networks. According to Rob, “That pillar is information management, and there is no other firm that has grown into the space as well.”

Right on Rob!

Mark…