Thread regarding IBM layoffs

IBM is nothing more than a technology hedgefund

It actually has so much cash, they could be in the top 10 of banks and their finance organization is a main driver of their survival.

The net/net is that they don't have much to offer but to buy companies and milk them for revenue, toss them out the door and leave them for dead along the technology roadside.

There are no new ideas or value contribution and customers can't be loyal because the only business that IBM is in is making money off their technology investments in which they as a company, do not offer any additional value add.

Other companies are invested in innovation, value to clients and their product portfolio. Hedge fund IBM is not.

by Anonymous
| 2481 views | | 8 replies (last April 29, 2021) | Reply
Post ID: @OP+1aybLAkF
Comment! It's anonymous!

8 replies (most recent on top)

The IBM Redhat strategy on full display
https://finance.yahoo.com/news/ibm-acquire-turbonomic-building-industrys-150000336.html

NOTE if you are on the IBM legacy side that this acquisition, you are most likely in the cross hairs. It’s all Redhat all the time IBM legacy will be disposed of

by Anonymous
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Post ID: @3alo+1aybLAkF

IBM’s debt is high, due to Redhat, but approx 25 billion of it is IGF, which they are deleveraging via 3 billion dollar factor tranches The core debt is approx 30 billion with 11 billion in the bank so not nearly as bad as some folks speculate on. Running up the debt to buy Redhat (32billion to get a 4 billion in revenue company with maybe a billion in profits) was quite a gamble, but when you are buying a completely new way to engage the market place due to mismanagement, it was a bargain. IBM is now exiting the “legacy” engagements (Power, storage, middleware that doesn’t play well with Redhat, moonshots, body shop engagements, and non-essential (think cloud) consulting. The exit is taking way longer than it should due to management overload. IBM a would be much better served if they just directly dealt with the excess management bureaucracy. They are the hold up, and the impediment to turning this company around. They need to be cut by 50%

by Anonymous
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Post ID: @3nyo+1aybLAkF

IBM stopped being a technology company and became a financial engineering company long ago...

by Anonymous
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Post ID: @3zzk+1aybLAkF

IBM has 11.3 billion of cash and $56.4 billion of debt. I would not bank with them.

by Anonymous
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Post ID: @1mnj+1aybLAkF
It actually has so much cash, they could be in the top 10 of banks

I don't think either part of that is true.

IBM owes far more than it has cash. And its cash reserves went down by about $5B last quarter, leaving about $10B today. Not very long before they have to cut or eliminate dividend or stop investing altogether in anything else.

by Anonymous
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Post ID: @1oyu+1aybLAkF

True... and these days its getting worse every day. Who needs IBM for anything now...

by exibm.here.bm.sucks
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Post ID: @1scq+1aybLAkF

Technology hedgefund which is managed in a worse way.
I wonder if they just invested 34bil in spy (conservative estimate) last yr or in 2018 that would produce more profits than RH acquisition

by Anonymous
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Post ID: @1duy+1aybLAkF

Buy other companies products then bluewash them until they don’t even resemble the original product.
What’s more important to them is all their internal fluff. It’s not good

by Anonymous
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Post ID: @1ems+1aybLAkF

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