image thumb7 IBM Dominates The Tech Service Industry.. Right, But For How Long?

IBM as a whole as had its ups and downs, but when in need of some good, reliable tech support it’s hard to match what they got going on in that arena. While Microsoft, Google, Apple, and others will continue to dominate the personal computer software market, places like IBM have become an industry standard for computer service as a whole. And I guess they will continue to enjoy this dominance as long as computing exists.

After their early 90’s slump, the company shifted gears. They had to realize this and the sooner they did, the better it would prove for them I recall the then CEO of Forrester Research, George F. Colony stated:

IBM saw the challenge that all great companies do sooner or later-they dominate, lose it, and then they re-create themselves or not.

And many players in the same category as IBM is, continue to evolve and redefine their image, adding value to customers and businesses within an ever-weakening recession. What HP stated earlier with the pulling the shutters down on the HP Touchpad and the WebOS by stating that “tablets are the future of personal computers” was seen long before by IBM.

Almost a quarter of IBM’s current sales are coming from tech support service contracts that make up almost half of their yearly revenue, and they’re not selling products to consumers to make profit. While companies like Apple and Microsoft continue to depend on people craving their products like a caffeine buzz, IBM is realizing they’re missing out on a piece of the pie.

There’s some talk about how Microsoft is slowly getting into the database software servicing and receiving some negative clout about trying to share some of their competitor’s market share. It will be interesting to see whether places like IBM release more products or just focus on delivering tech support to the right businesses. There are so many companies out there realizing that delivering great tech support could be a good catch. There’s Google offering tech support on software devices like Smartphone’s, Tablets, and Androids. The question then becomes this: if every tech company tries to get their fair share of the service and product segment of the market, how will the Microsoft’s and IBM’s continue to have a clear image that stands alone?

Judging by these tech giants’ histories, only time will tell.