Is IBM Being Beaten by Cray in Supercomputers or Is It Reshaping Supercomputing? A Supply Chain View

10 Pages Posted: 22 Jan 2015 Last revised: 28 Jan 2015

See all articles by Andrii Ivanenko

Andrii Ivanenko

Independent

Christian Westlye Larsen

INSEAD

Anne C. Elster

Norwegian University of Science and Technology (NTNU)

Karel Cool

INSEAD - Strategy

Date Written: January 15, 2015

Abstract

Resource obsolescence through competition from converging technologies is quickly becoming a more urgent problem for sustaining competitive advantage than resource imitation. Not only can it make a firm’s resources obsolete or too costly to be competitive, it may also bring about shifts of power in the supply chain or eco-system that further undermine the competitive position of the targeted firm. This paper analyzes these dynamics and challenges with the situation that IBM is facing in the super computing (or high performance computing) hardware segment and the onslaught of their software/IT business due to cloud providers such as Google and Amazon, and also from much smaller new competitors such as Norwegian Cegal which focuses its cloud services in the oil and gas sector.

Keywords: Resource Obsolescence, Convergence, Competitive Advantage, Sustainability, Power Shifts, Value Added, IBM, CRAY, Supercomputing, Cloud, Supply Chain, Eco-system

Suggested Citation

Ivanenko, Andrii and Westlye Larsen, Christian and Elster, Anne C. and Cool, Karel, Is IBM Being Beaten by Cray in Supercomputers or Is It Reshaping Supercomputing? A Supply Chain View (January 15, 2015). INSEAD Working Paper No. 2015/02/STR. Available at SSRN: https://ssrn.com/abstract=2553194 or http://dx.doi.org/10.2139/ssrn.2553194

Andrii Ivanenko

Independent

No Address Available

Christian Westlye Larsen

INSEAD ( email )

Boulevard de Constance
77305 Fontainebleau Cedex
France

Anne C. Elster

Norwegian University of Science and Technology (NTNU) ( email )

Trondheim NO-7491
Norway

Karel Cool (Contact Author)

INSEAD - Strategy ( email )

Boulevard de Constance
77305 Fontainebleau
France
(33) (0)1 60 72 42 76 (Phone)
(33) (0)1 60 74 55 58 (Fax)

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