the big three..!!

It refers to 3 big global IT companies namely IBM, HP and Sun Microsystems. These 3 companies have earned a place for them in computer technology sector. However, Sun has faltered in recent years and talks are underway for its acquisition by Oracle Corporation.

IBM can be considered as the pioneer and founder of this industry. It has been recognized as a leader in a number of technology segments ranging from Mainframes to nanotechnology. IBM has a very strong research and development division which conducts basic as well as applied research . However, the company seems to be suffering from too much investment in expensive R&D . The company finds it difficult to convert its research knowledge into commercially viable products. Recently, IBM sold its computer hardware business to china based Lenovo in the face of increased competition . It has strong presence in server business, enterprise based software applications and other technology products. This company which used to enjoy monopoly position in most of the business segments has seen its share falling on account of new entrants.

It is present in about 150 countries of the world with employee base at 3,45,000. The company will have to face big challenges in the coming years. The software companies from India like TCS and Infosys have started to give IBM a run for its money in the segments like business integration and IT infrastructure . The absence of significant number of cash cows puts tremendous pressure on the revenues of the company in times of uncertainty. It needs to get its business focus right and target funds in the right areas rather than engaging in useless investments in different directions.

HP appears to be a company which has a clear strategy to power its growth in the 21st century. The company has gone through several transition phases in its 70 year old history. Initially, it became a leader in the instrumentation technology and used to manufacture instruments like frequency meter, medical equipments and other power equipments. It was the first company to manufacture hand held calculator. It ventured into computer hardware business in mid eighties and in a small period of time became a household name. It acquired Compaq in 2001 and thus consolidated its position in the hardware segment. It has leadership position in desktop, laptop, printers, scanners etc. It accounts for 80 % of the printing/imaging segment and this segment ensures abundant cash flows for the company to fund its new projects.

It has research and development division which conducts mainly applied research in areas of its business interests. HP has tie ups with major universities in US and Europe for conducting basic research. It has grown in leaps and bounds under the leadership of Mark Hurd who has been instrumental in getting HP back on track after the bad phase of 2000-2003. As a whole, the company seems to be heading in the right direction and it has the potential to dominate the information technology sector.