IBM's Commodity Managment Model
There is some real substance behind IBM's new campaign. Palmisano outlines IBM's $10 billion initiative [InfoWorld: Top News] See the presentation.
This marketing genius can viewed from a few functional perspectives:
1. MarCom: Great teaser campaign ("Humor translates as confidence, and that works well with I.B.M. these days," the Ad Man said) that works well in today's pessimistic environment. Even better positioning of "on-demand computing" as a natural evolution of computing to satisfy business requirements in a turbulent world.
IBM’s Definition of an On-demand Business: An enterprise whose business processes
– integrated end-to-end across the company and with key partners, suppliers and customers –
can respond with speed to any customer demand, market opportunity or external threat.
2. Product Marketing: realizing an integrated commodity management model
3. Product Management: standards-based integration (for span), virtual management (for scope), utility aggregation (for scale) with spot purchasing (for speed).
IBM has presented a compelling case for how their vertically integrated model will function in the commodity tech industry. They have embraced inevitable, what I think is the sea change after the bubble:
Storage, Processing and Bandwidth will trend towards commoditization while software and services will trend away from it. More on that tomorrow, this is getting fun.
11:17:28 AM 
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