info on ibm - may be of interest
INTERVIEW-IBM exec says tech changes mean moving on
By Caroline Humer
NEW YORK, June 25 (Reuters) - Sometimes, even the world's largest computer maker has to move on.
That's what International Business Machines Corp. (IBM) decided when some chip and storage technology lost its growth potential, Nick Donofrio, IBM's senior vice president for technology and manufacturing, said on Tuesday.
"Technologies come and go all the time," he said in an interview ahead of a speech at the TECHXNY, a trade show in New York. "As good as technology is and as fun as technology is it can also be very brutal. When its time is spent, its time is spent and it's time to move on."
Donofrio, a one-time engineer who has headed some of IBM's largest divisions -- including large corporate computers -- is now effectively the company's top technology officer. He is in charge of divisions ranging from IBM Research to manufacturing to strategy.
IBM last month said it would get out of the hard disk-drive business and it also announced plans to reorganize its microelectronics operations, phasing out certain older aluminum-based chip manufacturing capacity.
The Armonk, New York-based company has become increasingly critical of its money-losing business lines this year as corporations have cut tech spending amid the downturn.
As a result, new Chief Executive Officer Sam Palmisano is trying to find ways for the company to grow earnings and revenue again.
Donofrio said IBM is focusing on areas where the company sees the potential for growth to accelerate, such as its plan to offer semiconductor design services similar to its partnership with Sony Corp. (6758).
IBM is working closely with Sony to develop the chip that will be used in the company's next-generation gaming system, PlayStation 3. "It's a way more powerful thing then exists today," Donofrio said.
IBM is already building chips for its own computers and is thinking of adding perhaps two handfuls of customers in deals like Sony's to help give the IBM division size and scale.
"We have the experience to be able to do this for people faster, better, cheaper, which is what they want," he said.
While IBM will continue to make chips for other companies -- it currently makes the chip used in Apple Computer Corp.'s (AAPL) personal computers, for instance -- its emphasis will be on doing the more valuable design work, he said.
IBM will continue to focus on technologies that it says will dominate in the future, including self-healing computer systems that can automatically diagnose their own problems and fix them, Donofrio said.
In addition, IBM is increasingly emphasizing what the company calls utility computing, or computing on demand. That, Donofrio says, will enable companies to access computing resources as they need them.
"You have to have a long-term view to survive in this industry," Donofrio said.
IBM shares, which are trading at a five-year low, fell $1.13, or 1.6 percent, to close at $68.60 on the New York Stock Exchange.