For the last decade, we have seen a trend in which some manufacturers get out of the hardware business and focus on their core business: software and services. For example, IBM began edging itself out of the commodity hardware business when Big Blue sold its PC factories to Sanmina-SCI, its hard drive unit to Hitachi, and its PC group to Lenovo. And storage providers like EMC, which used to solely rely on hardware, are today revitalizing their businesses with software and services.
For many software makers, putting together commodity hardware and bundling it with code is not cost-effective for the bottom line or a value for customers. Customers could often obtain the same or better off-the-shelf hardware components at lower cost or recycle old equipment to satisfy a manufacturer’s minimum or recommended hardware requirements to run software. But all trends, like the rule of law, have exceptions.
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