Scott builds Software » earnings http://scottpenberthy.com Musings on iPhone, Flash and the Cloud Tue, 28 Jun 2011 05:02:40 +0000 http://wordpress.org/?v=2.8.4 en hourly 1 Google earns nearly 50% as much as IBM http://scottpenberthy.com/2008/10/16/google-earns-nearly-50-as-much-as-ibm/ http://scottpenberthy.com/2008/10/16/google-earns-nearly-50-as-much-as-ibm/#comments Fri, 17 Oct 2008 02:58:57 +0000 Scott http://scottpenberthy.com/?p=66 Eric Schmidt talks about Google Earnings

Eric Schmidt. Dr. Half IBM.

This evening I was reading the post mortem from 3Q earnings announcements.  Google surged with a 26% increase in earnings, to $1.35 billion.  IBM was suffering a tad in Europe, but still posted gains from a year ago, earning $2.8 billion.

It took a minute for that to sink in.

Google, founded in 1998, now earns 48% as much as IBM.  A large portion of that money comes from a new market, tapping a need for people to reach each other at time of transaction, and sell their wares.  Most of this money is automated, moving through online systems, running in a cloud.  Contrast this with the labor, hardware-driven revenue of IBM and companies like them.

Amazing.

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