Jobs’ Firm Reported Set to License Technology to IBM
When he was chairman and president of Apple Computer, Steven P. Jobs was openly derisive of International Business Machines and what he believed was its stodgy view of the world of technology. But the opinionated, 33-year-old computer marketing whiz has apparently had a change of heart.
According to several sources, Jobs is on the verge of announcing a business deal with his former nemesis. The deal reportedly will allow IBM to license a part of the sophisticated technology in the still-secret computer Jobs’ latest company--Next Inc.--is set to unveil Oct. 12 at a big bash in San Francisco.
The sources say Jobs has agreed to license the graphic user interface--the fancy name for a computer screen’s design format--to IBM for use in its high-powered RT model work station. Sources placed the value of the deal at $10 million. Next executives would not comment on the reports.
While news of a Jobs-IBM alliance has struck industry wags as “novel,” and “ironic,” several analysts cautioned against getting caught up in the personalities and drama that Jobs and IBM invariably create on their own--let alone in tandem.
“It’s a single agreement for a single deal,” said one analyst who spoke on the condition that he not be named. “You’ve got to be careful not to read a lot into it.”
In fact, the analyst suggested that the IBM licensing deal’s largest effect may be the publicity it is bringing Jobs in the weeks before he is scheduled to display his 18-months-overdue work station.
“It’s phenomenal,” one analyst said. “A strategic alliance with IBM has a lot of color to it--and it comes just when Jobs needs it.”
Jobs created Next in September, 1985, several months after a bitter power struggle led to his removal as chairman of Apple, the company he co-founded in 1976 and helped guide into an innovative powerhouse in the personal computer industry.
Didn’t Meet Schedule
Within months of opening Next in secluded hilltop offices in Palo Alto, Jobs promised to deliver a technically sophisticated, powerful, eye-pleasing and easy-to-use machine that would revolutionize teaching in colleges and universities. Early investors included Stanford and Carnegie-Mellon universities and billionaire businessman H. Ross Perot.
But much to his chagrin--and possibly to the ultimate detriment of his business--Jobs was unable to deliver the product as quickly as he hoped. And Jobs stopped talking publicly about his earlier promises.
Details of the machine, however, have escaped the Next compound. It is reported to be a sleek black box with a high-quality stereo sound system, a jumbo screen and a built-in hiding place for the keyboard.
In addition, the still-unnamed machine is expected to have a number of features not available on current personal computers, such as a high-speed facsimile modem, powerful digital sound processing capabilities, an erasable compact disc player for data storage and retrieval and the ability to display television-quality video signals.
Wider Market a Possibility
Now that the persistent development problems, including software glitches and a shortage of memory chips, are believed solved, Next has rented Davies Hall, one of the largest and most fashionable exhibition auditoriums in San Francisco for the unveiling extravaganza next month.
Although Jobs has said the Next computer was initially designed for college students and academic researchers, analysts say they now believe he envisions a wider market among business for the machine.
However, analysts note that Jobs faces a much tougher environment, even since he first announced his plans for Next. IBM and Apple have set high standards for business applications for personal computers, and those two companies--plus fast-growing Sun Microsystems--have successfully wooed the specialized academic market.
“He’s got to have something that really sets it apart, something that lights a fire,” said William Lampesis of Dataquest Inc. in San Jose.
