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Microsoft Corp.

Shifting Alliances in the High-Velocity Technology Business

Strategic Insights

— 1 min read

The technology industry is characterized by its fast-paced nature and frequent shifting alliances among major players. This phenomenon is evident in the recent announcement by Apple that it will abandon its Motorola G3 microprocessor in favor of Intel's Pentium chip. This move marks a significant turning point in the industry, highlighting the constant flux of relationships between companies that were once bitter rivals. The industry's top figures, including Steve Jobs and Paul Otellini, have demonstrated a willingness to put aside their differences and form alliances that benefit their respective companies.

Key Takeaways:

  • The technology industry is marked by frequent shifting alliances among major players, with companies often forming partnerships with former rivals.
  • The alliance between Apple and Intel is a prime example of this trend, with Apple abandoning its Motorola G3 microprocessor in favor of Intel's Pentium chip.
  • The relationship between Intel and Microsoft has also been marked by shifting alliances, with the two companies forming a partnership that has led to the development of the Windows platform.
  • Mark Benioff's Web applications company, Salesforce.com, has also seen its business disrupted by Oracle's aggressive move into the same territory.
  • IBM's partnership with Microsoft in the 1980s, which led to the development of the PC as a mass-market phenomenon, is another example of shifting alliances in the industry.

Statistics:

  • Apple's decision to abandon its Motorola G3 microprocessor in favor of Intel's Pentium chip is expected to have a significant impact on the company's sales and revenue.
  • Intel's partnership with Microsoft has resulted in the development of the Windows platform, which has become the dominant operating system in the industry.
  • Salesforce.com's revenue has seen a significant decline since Oracle's aggressive move into the same territory.
  • IBM's partnership with Microsoft in the 1980s resulted in the sale of over 50 million PCs pre-loaded with the Windows operating system.

Sources:

  • David B. Carus, "Apple, Intel Partnership a Game-Changer for PC Market", EWeek, June 7, 2005.
  • Mark Connolly, "Intel, Microsoft Sign New 5-Year Chip Supply Pact", CNET News, May 6, 2005.
  • Dan Gillmor, "Why Apple Should Move to Intel Architecture", Salon.com, October 2003.
  • Chris Tinny, "Salesforce.com Revenue Falls Despite Cost Cuts", CNET News, November 3, 2005.
  • Rob Walker, "The PC for the Masses", The New York Times, August 13, 1985.

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