https://cloudwars.co/ibm/ibm-shocker-q4-cloud-growth-plummets-to-8/
11 replies (most recent on top)
IBM needs a complete cultural overall that promotes transparency, accountability, pragmatism, and innovation.
Do that, and IBM will retain and attract the talent it needs. Worked in too many orgs where status quo was the name of the game. So far, the status quo has been orgs who speak a big game but ultimately with nothing to show for it and maintaining or growing head count where its absolutely unnecessary (that is likely why you see seasonal layoffs).
yet they're still thinking people will relocate to shanty town just to be RA'd
Hahahahahaha. IBM s—s
@hds+198ris9x oracle is building it's public cloud platform called OCI and paying engineers FANG salaries, search for it.
They haven't abandoned public cloud like ibm did. They might be fudging the growth numbers now but will retain their db customer base on their cloud atleast.
Ibm's cloud paks are a failed strategy
RSH The 4 businesses do approx 15 billion a year. They are the Ginni definition of empty calories. 6 billion in Transaction processing, 6 billion in Watson (cognitive applications), and 1.5 billion in power and storage respectively. Bob suggests keeping Watson, but reorg-ing the management, with the other 3 being sold or spun off. That would be approx 9 billion of empty calories. IBM has announced 3 billion will be spent on restructuring in 2021. These 4 businesses certainly have to be in the bullseye. Given the charge vs the revenue we are looking at 20-33% charges. I would expect each of these businesses have some value if you rightsize them and change their business model to a replacement (low/no growth/shrinking ) model. YEP it’s ugly, but this is where IBM seems to manage businesses to. Just ask the chip, PC, and Intel server divisions. Don’t fight the tape IBM get this restructuring behind you. Wall Street already knows your ugly secret that you are going to shrink and shrink a lot.
AK The market has moved against you This guy is speaking with his feet and I believe there are plenty more following him. You did not execute, and the street will be ruthless
https://seekingalpha.com/article/4401778-i-throwing-in-towel-on-ibm-and-dividend-growth-investors-should
Bob Evans, watching the sausage being made, down on the farm.
Holy Cow! Great write-up. Calling it like it is.
Hey, if it works for Oracle to fudge their cloud revenues, expect any other trailing cloud company to do the same thing. Creative accounting has been around since the abacus, and I "assume" it's legal?
The biggest shocker would be if IBM actually reported it's actual real public cloud revenues. This public cloud revenue number is probably much less than $5 billion annually. IBM is trying to trick the marketplace by creating a catch-all Cloud revenue category that includes all sorts of things that are not truly cloud and claiming $25 billion in annual Cloud revenues.
Bob is hitting nail right on the head. IBM is in deep deep trouble, because it refuses to change. NOTE his article link in the same above story It’s what IBM has to do, but they refuse to pull the trigger
https://cloudwars.co/ibm/why-does-ibm-have-4-huge-zero-growth-businesses-in-todays-market/