PwC

["Steve Richter" <srichter@xxxxxxxxxxxxx>]

A good report on IBM and the consulting business.

In my view, the future of our iSeries is completely dependent on how it
impacts the IBM consulting business.  And that might be good for us because
the pricing of the system is much less important than the resulting $300 per
hour consulting work it produces for IGS.

Steve


http://www.crn.com/sections/coverstory/coverstory.asp?ArticleID=36749


"Few high-tech executives would argue that IBM doesn't know which side its
bread is buttered on. During last week's conference call announcing the
merger, IBM CFO John Joyce said roughly 80 percent of the company's profits
come from services and software sales. The PwC Consulting deal can only hike
that percentage, say channel executives. "

"IBM recognized long ago that services are the main business driver in the
IT sector, said Mike Grainger, president and COO of distributor Ingram
Micro. "There is a huge transition in the industry of more and more focus on
solutions and less on products," Grainger said. "That's one of the reasons
they're leading the way right now." "