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IBM CEO Dismisses Idea Of All-Powerful Google

Sam Palmisano cites weaknesses in several areas

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Believe it or not, the company that became IBM was founded in 1896, and at the moment, IBM has a market cap of around $172 billion.  So it’s not going anywhere.  And IBM’s CEO – who has been with the organization since 1973 – doesn’t think Google will become nearly the behemoth some people have predicted.

Sam PalmisanoSam Palmisano recently discussed a number of subjects in a wide-ranging interview with Leslie P. Norton.  He devoted little time to the search giant, however, rejecting the idea that Google’s tech will ever act as any sort of global backbone or even threaten his company.

Palmisano asked, "Is Google going to become the computing platform for the enterprise?  Is a bank going to run itself on Google?  Is an airline going to run itself on Google?  Is IBM going to run its supply chain on Google?"

He also said, "Is Bharti Wireless going to run themselves on Google?  Is the banking system of China that we’ve built going to be on Google?  Is the Russian Central Bank [network] that we’re building going to be on Google?"

IBM’s CEO then provided a very simple answer to all of the questions: "No."

Of course, there are those who believe differently, and Google itself might be among them.  Sherri Davidoff noticed not too long ago that an ad encouraging people to "Learn about Google at Work" bragged, "Over 60% of the U.S. state governments have gone Google."

It may also be worth noting that Google’s market cap of about $196 billion is about 14 percent larger than IBM’s.

Still, it’s hard to imagine how Palmisano could have made his position on the subject of Google’s potential dominance any clearer.

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IBM CEO Dismisses Idea Of All-Powerful Google
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  • modelportfolio2003

    I believe IBM and Google should more likely be partners in many endeavors, esp in the area of cloud computing for enterprises. I believe there could be areas of interest to explore rather than attempt to tell the world what Google will not be. Google makes money in advertising revenues and IBM makes the majority of its revenues from software and services.

    IBM should note that spending time telling the world what Google is not going to be is a pretty dangerous business as it has the raw talent to be in areas currently not contemplated by IBM.

    Comments?

  • beentherehavetheshirt

    IBM only knows how to respond as it has………………. IBM innovates by buying out or squashing their competition thru lawsuits Google is much too large to be handled in that manner. IBM only generates excitement on Wall Street by cutting jobs, they can not figure out how to grow organically. One only hopes that Google takes a lesson from IBM and does not trust their growth to cut and dried bean counters. Lastly it is highly unlikely that Google would wish to become tied to the crumbling house of cards that IBM is, why would they, at present they are an ethically run growing enterprise. IBM is old, poorly run and has been gutted down to an empty shell with only old thinking fat cats left to tout the business.

    One other thought; Google practices true global diversification. IBM’s method of global diversification is to move American jobs to any country that pays third world wages. They then move those jobs to any third world country where the pay scale is less, thereby leaving a wake of economic and environmental disaster in their wake. All these downward moves have left the company with almost zero quality performance, and a high number of unpublished security breaches.

    It is particularly troubling that IBM has its fingers so deeply entrenched in almost every banking and government entity world wide. It will be interesting when the American public finally wakes up and realizes that their financial and personal information is now being handled by India and Latin America and will shortly see it all handled by China and South Afirica. (and no matter what the IBM execs tell you, those people can directly view and manipulate the information….. )

    Google in business with IBM. Good Lord I hope not…….

    • Guest

      I am sorry to say that you are way behind in your thoughts about IBM. IBM is a different company today. what IBM does today the rest follows it. You need real brains to understand them after all IBM has the highest number of patents and noble prize winners working in their Watson Labs. Google and Microsoft has none. Bill Gates , Eric Schimdt were in their dippers when the Mainframes were still running in NYSE :) . I guess you do not have the brain to understand this simple thing ;)

  • http://www.controldatainc.com agency collection

    IBM used to be leaders in computers now they are followers. I think Google is working hard to keep their status in every field. Everytime Bing comes out with something Google offsets it with new ads and new releases to combat the competition.

  • http://www.outsourcing-options.com Ken Lightwood

    IBM is in business for a long time and has proven to change with technology. IBM itself once was the biggest and dominating company in its area. It saw Microsoft come, grow and take the software market, the same is true to Dell and other PC makers. After all IBM was in all of these markets at one point and is still in some today.

    Google on the other hand is a new player, growing strong and is now expanding in a lot of areas. I do not see Google and IBM crash at this point anywhere and I do not think it is one to worry about. In my view Microsoft has to watch out out on Google, as Google is moving into an area that is Microsoft main business.

    Microsoft has to worry way more than IBM, because Microsoft has not managed to enter new markets and is still strongly depending on its original market operating system. Google is about to enter that very market.

    So Google might be the new Microsoft, when it comes to search Google has reached a position that is equal to Microsoft’s operating system dominance.

    IBM does not have to worry about Google, at least not at this point, but the future might change it