Vertically again “pop”
Action from the perspective of today’s technology giants, IBM’s strategy over the past seems to be correct. Many of the current deal that pendulum back to the original position. The Great Transformation in the technology industry, from horizontal to vertical change will affect competition.
Currently, with the rise of mobile devices, with different products available chip technology may be the key to success.
Intel senior vice president and general manager of ultra-portable Anand Chandrasekhar (AnandChandrasekher) said: “All in all, these vertical business need to chip, and the entire world is driven by the chip. Vertical strategy where the return is due tremendous opportunity. ”
Apple’s vertical strategy has been implemented for some time, the company has been using its own operating system and hardware, but has R & D cooperation with IBM and Motorola PowerPC architecture, and later carried out with the Intel PC microprocessor co-operation. For iPod and iPhone, Apple switched to ARM-based chips, the chip supplier for more. Meanwhile, Asian companies such as Apple by Foxconn assembled products to concentrate on design and marketing.
Apple’s troubles is that the cost of silicon chip manufacturers is only 10 dollars to 30 U.S. dollars but sold for Apple. In addition, new products such as Apple’s iPad need for better battery performance and life time. Therefore, in addition to the acquisition PASemi Apple but also the acquisition of another chip design company Intrinsity, iPad and iPhone production for ARM-based chips.
In this context, Apple’s 80 billion acquisition of ARM rumors still looks a little ridiculous – perhaps not so absurd. Meanwhile, Apple’s vertical strategy is not necessarily achieved through ARM. In competition with Google, Apple has a lot of money, and will acquire more companies. For example, Apple recently acquired mobile advertising company QuattroWireless, three years ago, no one would think Apple would be involved in this field. If Apple intends to acquire ARM, the aim may be to prevent their opponents to provide ARM chip.
Who is the imitator?
Google hopes to Android operating system against Apple’s iPhone. Some mobile phone manufacturers based Android produced its own brand mobile phone, but initial sales were relatively flat. After Google launched its own mobile phone NexusOne, but sales are still not ideal. Now, presumably to catch up with Apple, Google acquired startup Agnilux, the company’s team has produced chips for the PASemi.
Microsoft in the vertical development of a successful precedent. As early as 1997, Microsoft acquired WebTV, access to its hardware and chip design team. Microsoft uses some of the experts in 2001 created the first Xbox home consoles, the Sony and Nintendo to create the impact. Previously, the two companies have facilities on Microsoft a threat to the family. As the Windows operating system, Sony and Nintendo are not customers, and therefore Microsoft will not enter the game industry’s own damage. After the adoption of Xbox360, Microsoft stepped up control of chip design – Microsoft and IBM employ ATITechnologies produce customized chips, rather than the Xbox chips used in general. This makes Microsoft’s Xbox360 can better compete with Sony’s PlayStation3.
Microsoft’s acquisition of a more subtle place in 2008. At that time the company acquired Danger, a design so early Sidekick smart phone company. Use of Danger, Microsoft has developed for young people Kin series smart phones. The vertical strategy undermines its horizontal WindowsMobile operating system strategy, because Microsoft started to compete with their mobile partners.
Intel has also adopted a vertical strategy. In 2009, Intel to 884 million U.S. dollars acquisition of Wind River Systems, Inc. (WindRiver), for its embedded operating system. Wind River’s software application is very broad, covering automotive, industrial control and many other fields. In order to expand into PC chip outside the area, the Intel acquisition of Wind River is reasonable, although its effects have not yet fully apparent.