Computer Systems




The computer hardware manufacturing industry includes the production of desktops, laptops, servers, storage, processors and other computer related products. IBM and Sun operate more in the diversified computer systems industry which includes Information Technology (IT). IT is the computer based system of managing information from various sources of a company or institution. IT collects this information and stores or displays it in a practical and effective way so that companies or institutions can fully understand different streams of data.




The Need for Collaboration: Companies such as Microsoft (MSFT), Cisco Systems (CSCO), and EMC (EMC) have stressed the need for collaboration in order to successfully shift to new market trends. Consumers are demanding fast, reliable, and compatible communication and IT systmes between companies and the only way to do that is to, in some capacity, work alongside competitors. The effectiveness of these tech companies working together could greatly determine how well they adapt to the change in market trends and the future of technology.




Growth ofChina: Many of the tech companies are expanding into China in order to capture this growing market. Dell (DELL) made a deal with Gome Group, China's largest electronics retailer, to sell Dell computers in its stores. Sun Microsystems (JAVA) has seen substantial gain from its postitions in China, making it Sun's second largest Asian market. China is a huge market and many of the tech companies are trying to build a presence in this market.