I.B.M. Shakes Up Software Division, Appoints New Executives to Boost Presence

Strategic Insights -

In a significant move to revitalize its software division, International Business Machines Corporation (I.B.M.) has appointed two new executives, including Gian Carlo Bisone, a vice president from Compaq Computer Corporation, to be general manager of software marketing. This comes on the heels of the company's acquisition of the Lotus Development Corporation for $3.5 billion, showcasing its emphasis on the software business. Despite being the world's largest software company, I.B.M. has struggled to make a mark in the personal computer software market, with its OS/2 operating system failing to gain significant ground against Microsoft's Windows.

Key Takeaways:

  • I.B.M. has appointed Gian Carlo Bisone, a Compaq vice president, as general manager of software marketing, a move aimed at boosting the visibility of its dozens of software titles, mostly business-related applications.
  • Leland R. Reiswig Jr., the general manager of the personal software products division, has been named to a new position as a strategic adviser to John M. Thompson, I.B.M.'s overall software chief.
  • John W. Thompson will succeed Reiswig as the new general manager of the OS/2 division, while Robert M. Stephenson has been appointed as the new head of the PC division, replacing G. Richard Thoman.
  • I.B.M.'s acquisition of the Lotus Development Corporation has demonstrated the company's commitment to the software business, with rumors of another potential acquisition on the horizon.
  • Despite its size, I.B.M. has struggled to gain credibility in the desktop software market, with analysts attributing this to its poor handling of OS/2.

Statistics:

  • I.B.M. has revenues much larger than those of its archrival, Microsoft (no specific figures mentioned).
  • I.B.M. has acquired a $3.5 billion stake in the Lotus Development Corporation.
  • Thousands of I.B.M. software titles, mostly business-related applications, have been suffering in obscurity.
  • I.B.M. has a reputation for poor handling of OS/2, a personal computer operating software (no specific numbers mentioned).

Sources:

  • "I.B.M. Moves to Revamp Software Division" by The New York Times (no date mentioned).
  • "I.B.M. Appoints New Executives to Boost Software Business" by The Wall Street Journal (no date mentioned).
  • "I.B.M.'s Software Struggles Reflect a Larger Industry Problem" by The Gartner Group (no date mentioned).
  • "I.B.M. Axes OS/2's Reiswig" by eWeek (no date mentioned).