I.B.M. Overhauls Software Development in Bid to Regain Ground

International Business Machines Corporation is making significant changes to its software development efforts in an attempt to recover from a lagging position in the client-server computing market. The company, which has lost business to rivals like Microsoft, aims to reduce its estimated annual spending of $1 billion on developing software operating systems. I.B.M.'s new plan involves better coordinating its efforts and introducing a software initiative, code-named Workplace, which will enable applications to run seamlessly on different I.B.M. operating systems.

Key Takeaways:

• I.B.M. is overhauling its software development programs to regain business lost to rivals like Microsoft, with estimated annual savings of $1 billion.
• The company has appointed Peter R. Schneider as a vice president to coordinate the development of the Workplace software initiative, which aims to enable seamless application running across different I.B.M. operating systems.
• Workplace is a series of software technologies that will allow I.B.M.'s operating systems to transition more easily from one chip architecture to another, such as from Intel microprocessors to PowerPC chips.
• The initiative will also enable outside software developers to make fewer changes in running on different operating systems, thanks to the use of micro-kernel software.
• I.B.M. is realigning its worldwide software development team to focus on Workplace, with Leland R. Reiswig Jr. in charge of worldwide development and marketing of the Workplace software.
• Analysts believe that the success of Workplace is crucial to I.B.M.'s plans to break down the fiefs within the company that have often worked at cross-purposes.
• I.B.M.'s efforts to regain control of both key hardware and main software technologies of computing are part of a broader strategy to counter the transition to low-cost, efficient microchips and the dominance of Intel Corporation in the microchip market.

Sources:

• "I.B.M. Overhaul Said to Aim to Regain Ground," The New York Times, April 1993.
• "I.B.M. Software Plan Seeks to Unify Initiatives," The New York Times, April 1993.