Managing Information Technology

(Frankie) #1
Chapter 2 • Computer Systems 29

serversinstead of midrange systems, but we disagree with
this label because a wide variety of machines including
microcomputers, midrange systems, mainframes, and
supercomputers can and do perform in a server capacity.


Microcomputers

Microcomputers, often called micros or personal
computersor just PCs, cost from $200 to $4,000. They
generally have less power than midrange systems, but the
dividing line between these categories is faint. In general,
microcomputers can be carried or moved by one person,
and they usually have only a single keyboard and video
display unit (which is why they are called personal com-
puters). Desktop PCsare the most familiar, but PCs also
come in laptopornotebookmodels in small briefcase-
like packages weighing under 10 pounds and in newer,
smaller handheldorpalmtopmodels weighing in under a
pound. Smartphonesare handheld PC which also operate
as cellular telephones (see the box “The Smallest PCs:
Smartphones”). An intriguing variation of the notebook
computer is the tablet PC,where the user writes on an
electronic tablet (the video screen folded flat on top of the
PC) with a digital pen (see Figure 2.5). Finally, the newest
variation of a PC is the netbook,which is a stripped-down,
smaller laptop priced in the $300–$500 range. Netbooks
rarely have a CD/DVD reader/writer or other extra fea-
tures; they are designed for use on the Internet and are
being marketed both by computer vendors and by wireless
phone carriers who want to sell the user a wireless data
contract (Crockett and Kharif, 2009).
Let us be clear about the labels in this category.
While PCis often used (in this book and elsewhere) as a


synonym for microcomputer, in fact PCrefers to the IBM
Personal Computer or any one of the compatible machines
built by other vendors such as Hewlett-Packard (HP) and
Dell. For practical purposes, the PClabel encompasses all
microcomputers except those built by Apple. So in this sec-
tion we will talk about PCs and we will talk about Apples.
By the second half of the 1980s, the most popular
microcomputer for business use was the IBM Personal
Computer, designed around microprocessor chips built by
Intel and the PC-DOS operating system (a software
package) created by Microsoft. At the end of the first
decade of the twenty-first century, IBM-compatible
machines—PCs—still dominate the business marketplace,
but noneof the new PCs are being manufactured by IBM.
In 2005, IBM sold its entire PC business to Lenovo, a
Chinese firm. IBM was not happy with its profit margin on
the PC business, and simply chose to exit the market. With
the sale, HP passed IBM as the world’s largest IT firm,
dropping IBM to second place. At present, HP, Dell, and
Acer (Taiwan)^2 are battling for market leadership in the PC
business, although they achieved their premiere positions
by different routes. Dell developed as a direct-sale vendor,
originally by mail and telephone and now predominantly
via the World Wide Web, while HP moved to the top by
acquiring Compaq Computer in 2002. Acer, already a
major player, passed Dell for second place in 2009, in part
because of its acquisitions of Gateway and Packard Bell
(Gonsalves, 2009c). Other major players in the PC
market include Toshiba (Japan), Fujitsu (Japan), and Sony

(^2) From this point on through the end of the chapter, all firms mentioned
are based in the United States unless otherwise noted.
FIGURE 2.5 HP EliteBook 2740p Tablet PC (Courtesy of Hewlett-Packard)

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