I just got back from a great dinner put on by some of the IBM guys here in the Southeast. The aim of the dinner was to bring together CxOs of Atlanta-area video game and entertainment companies. I got a chance to share the PlayMotion story with my peers, but more importantly, I was able to learn more about what is going on here in Georgia from other players. Very cool.

The companies represented included PlayMotion, Kaneva, CCP/White Wolf, and Hi-Rez Studios.

IBM is sinking a fairly significant chunk o’ change in developing a strategy to support the space - it will be interesting to see how their strategy evolves. They are obviously more comfortable in traditional industries (banking, manufacturing, etc). The question isn’t whether or not they have the cash and staying-power to influence the space …. they clearly do. Rather, it is a question of whether or not IBM can be agile, sexy, and work well with others.

If they are serious about the space, I would recommend that they bring on an industry veteran to lead up the effort. And while that sounds good on paper, I don’t know too many gaming executives who would want to make that shift …

Of course, they could just buy nVidia … and they’d be done. Competitor ATI went for a cool $5.4B to AMD. IBM is a hardware company, first and foremost. Could be a match made in heaven. TIP: You guys should buy nVidia before Intel does.

Cheers.

Hot off the wire. ISS now joins Scientific Atlanta, Moxie Interactive, and a host of other Atlanta companies that have been gobbled up this year:

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Atlanta — Information technology giant IBM has agreed to acquire Internet Security Systems (ISS), an Atlanta-based provider of information security technology, for $1.3 billion in cash. ISS software, appliances and services are designed to monitor and manage network vulnerabilities and exploits and respond in advance of potential threats. ISS has more than 11,000 customers worldwide including 17 of the world’s largest banks, 15 of the largest governments, 11 of the top public insurance companies and 13 of the world’s top IT organizations. IBM’s said that the acquisition bolsters its position in the growing market for managed security services.

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Cheers.

According to IDC, corporate sales of computer servers was up 4.4% in 2005. Doesn’t sound like a lot until you realize that it represents a move from $49.1B in 2004 to $51.3B for 2005. That’s a nice bump. The usual suspects were in the mix (IBM, Dell, HP, et al). IBM remained ranked in the top spot with a 32.9% chunk of the overall server market. No big surprises there.

According to Red Herring:

Because servers are used by most companies ranging from small-to-medium businesses (SMBs) to large corporations, market figures indicate that enterprise tech spending increased.

On top of that, shipments of hard disk drives jumped up 21% in Q4, driven primarily by demand in the portable/mobile markets.

That’s good news, folks.

Also of no big surprise, Sun Microsystems continued to lose market share, falling down to 9.5% of the overall server market. How long they have left is anyone’s guess. The question to me becomes one of reinvention. Will Sun successfully reinvent itself a la Apple, or will they continue to dwindle in influence? Either way, and much to my dismay as I’m a big fan of Sun, it is only a matter of time.

Cheers.