IBM's Thomas Theis, director of physical sciences for Big Blue, comments on nanotechnology, disruptive technology, and the reason that IBM is focused on physical research. Topics covered include next-generation magnetic memory (MRAM), IBM's advanced Millipede approach to data storage, and all IBM activities in between. Even though IBM recently was in the press for its entry into services, it is still involved in what has been its most effective effort: use of technology to expand existing markets and create new ones. Theis says IBM's research and development (R&D) focus is now on using nanotechnology to make ever more complex, but increasingly economical, hardware systems. When IBM CEO Sam Palmisano says IBM will avoid 'commodity hell,' he means that IBM will provide one of a kind or novel services, and that IBM will continue to map its approach to technology onto services. IBM has to extend its established businesses in IT hardware and continue searching for new methods or devices that permit the company to process, store, or communicate information. An example is Millipede, which involves creation of tiny indentations in a polymer 'with what is the world's most complex micromechanical system.' However, to add value, development of multiplexed electronics is needed to address each of the tips separately, as is software development of code that adds IBM error resistance.