The Humbling of a Computer Colossus

Under siege at every rampart of its empire as it fends off competitors, IBM is still fearsome -- but it looks a bit less than invincible

Fighting back is a decidedly unaccustomed role for IBM. Other companies have to do it all the time, of course, but the Colossus of Armonk (N.Y.) is different. Overwhelmingly dominant in its industry for decades, IBM is used to swatting aside small rivals -- and they're all small by comparison -- with a brush of its hand. Now things have changed.

Last week was worse than most. With AT&T; acquiring the computer maker NCR (for $7.4 billion), what had been little more than a bothersome competitor was suddenly part of a company as big as IBM. A new survey of customer...

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