This is an interesting concept that combines customized hardware and software for specific needs of clients. And guess who is pioneering this? Not IBM. It’s Accenture. This concept brings together off-the-shelf hardware with open-source Linux and other software components as needed. A very modular approach.

A quote from an article – “According to BusinessWeek, Accenture is now custom-building hardware for clients in concert with a New York start-up called Bug Labs. Bug’s devices are essentially a collection of components. They start with the open-source Linux operating system and add features as needed, including perhaps a GPS device or motion detector. To me, that approach is reminiscent of modern software design, in which objects — i.e., chunks of related code — are assembled into a greater, customized whole.”

“Software is the key here as well. Accenture plugs each new device into AMOS, an intelligent network that processes raw data to produce meaningful outcomes for clients. That’s similar to what Big Blue is trying to do with its varying technology specialties. Consider “Green Sigma,” an IBM consulting practice that depends on networked sensors and data analysis software to help companies and governments reduce carbon emissions and conserve water.”

“I’ll grant that’s an imperfect comparison. In both instances, IBM and Accenture are creating technology. The difference is that Accenture is selling Bug’s boxes and charging clients transaction fees for their use of AMOS. That’s much more like‘s (NYSE: CRM) model than your typical consulting gig.”

An interesting development. Accenture is changing the playing field and IBM will have to respond to this new trend. The question is what about HP (EDS) and Oracle?


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