So its has been mentioned that on the 5th Jan the new IBM will be announced. get rid of old think about the new. The new strategy will be pushed to one and all.. Last Jan they did the same and pretty much bu-----d it up segment 1 -2ABC C got canned in most regions by July.
So what are the thought that will happen?
I think more older software will be divested, Rational, Whatever is left of Tivoli / Netcool ?
Websphere will that go as well??
30 replies (most recent on top)
IBM Restructure = As usual we (Execs) have no clue So we're buying more time to line our pockets while giving ourselves more excuses to cover up the fact that we don't know our business and even worse, the industry.
Cerner is a big IBM MQ (product) user. They embed the product in the solution they sell to their customers... I wonder what will happen to that now that Oracle owns them.
I know Cerner and Epic very well. Oracle could muck this up. Epic will grow faster as a result of this. Epic was/is privately held. Integrated health systems (all of the big ones) use one or the other of these companies. Innovation is key to growth. Owning HIPAA controlled data that cannot be sold or compromised is restricting. IBM does not have a clue about Clinical Information systems. Hence Watson just thought they could provide data (blindly) and doctors would follow their advice on patient care. Cerner and Epic just ate their lunch.
Epic is the number 2 healthcare records company. (2.7 billion of revenue vs cerners 5.8 billion). Oracle has set the value at approx 5X revenue. I expect Google, or Amazon to make a play here, and that is where Watson health may come to play. AK wants partnerships, and the window is wide open right now.
@4lcx+1ek6hWnA Bigger blow to Watson Health! And, notice how absolutely nobody is interested in acquiring Watson Health. I'd bet IBM would just give it away, if they could.
Big blow to IBM Public Market!!! I don't know Ayman, you sure you have the right Leadership in place to counter this?
There goes the health side of the SW division Oracle struck first
https://finance.yahoo.com/m/3ef6bb18-ff80-3f36-83ce-112b67a13d5a/oracle-to-acquire-cerner-in.html?siteid=yhoof2&yptr=yahoo
How many more divisions does IBM need to get rid of to show revenue growth??? Every time a division is jettisoned the revenue goes down (obviously)... how about IBM tries to fix things instead of always taking the easy road of getting rid of things when these things do not perform!!! That kinda tell you how useless IBM management (the Execs) is!!
I think IBM will not consider spinning off GBS or SW as each feeds the other. GBS provides the consulting to modernize legacy SW and recommend LINUX, and SW provides the operational platforms for modernization. Infrastructure is the most vulnerable of the 3 remaining divisions as it just provides HW, OS’s, and cloud offerings. Everything except for Z can most likely be discarded as there are other alternatives that GBS and SW can exploit. The real issue facing IBM now that GTS is gone is rightsizing so that revenue per employee gets competitive vs the hyperscalers. The resulting lean IBM needs to get to 160-180k
Another broken promise Thomas is an arrogant liar
"Jan 5 is everyone who is in sales regardless of brand under R Thomas "
If that is the case, then that means that the next division to go will be GBS (sorry, IBM Consulting). IBM Software (CC&S) is building its team up, including now having resources in India. Also, apparently IBM Software will no longer do revenue shares with GBS. IBM Software always has had to go save GBS butts from a technical perspective. Looks like it is over now.
Yeah, move every seller under Rob Thomas... another disaster in the making. That guy is a total f u c k i n g id--t. Why do you think he was replaced by Rosamilia in the Software division? It is Rob's last chance to show something... if he can't, he is out!
Jan 5 is everyone who is in sales regardless of brand under R Thomas
There's no way that GBS sellers will move under Rob. Zero percent chance.
Take yet one more look at IBM and ask yourself, if you bought it, where would you extract value from it? I suggest there is 30 billion a year easy that can be extracted and still produce the same revenue. If a high growth company buys IBM they can forfeit the dividend for growth, they can move their management in and reduce the legacy management by 1/2, and they can sell or exit overlapping products (softlayer anyone). Then there is yet another marketing intangible. Offer IBM legacy for less to grow your public cloud (this exploits the current AK strategy) That’s a competitive edge worth a fortune vs your commodity competitors. Finally now that you own a slimmed down NICHE company with little to zero competition, you can move it into a separate division and you have pricing power given your open cloud carries the freight. Trust me AK and the IBM board know this, and definitely have a take out price in mind
@1hpz+1ek6hWnA You're not wrong. But I would change the opening. When it became abundantly clear that the expensive IBM management and organizational structure could not possibly compete in the PC space, their fate was already sealed.
It got even more bizarre. IBM had no hand in the Intel hardware space but continued to offer a collection of mediocre software that ran on that platform. The most obvious example of something that clearly no longer made sense for IBM to own was Notes. It didn't help that Notes is a very poor email system. (Yes, I can hear people saying "but Domino is great and secure and the email thing is just one small app." That battle was soundly lost; Notes was a loser and Verse is not much better.)
Probably their fate was sealed when the decided to make Intel very successful and Microsoft very, very successful. They unleashed a world that does not support the very high cost, very low speed management structure in place both then and now. As the dollars per unit of computing power in the technology world kept going down, the IBM operational model had fewer places where it could work. Mainframe is the last holdout and it lasts only because the customer set is locked in. (Most are, naturally, trying to move work to the cloud.) The dollars per unit of computing power on the mainframe is somewhat higher than, for example, an iPhone 13 or a Pixel 6. Similarly the cost of the software running on the mainframe is somewhat higher than, for example, MongoDB. And it has to be that way for the operational model to work.
When IBM sold Intel they sealed their fate. NICHE player (mainframe, Redhat, and consulting) So ask your self who wants a NICHE player and why. IBM has stated they are going to generate 35 billion in free cash flow going forward, so there is a whole lot of value there. You could ask the question how does mainframe, consulting and Redhat enhance someone else’s business. Maybe as a catalyst to public cloud.
Jan 5 is everyone who is in sales regardless of brand under R Thomas. it will be an "upskill or get out" msg.
Honestly, it's probably just this year's "thing." Every year there's a "thing" and it's usually summed up by a catchy acronym (think CAMSS or as I called it...SCAMS). This will be the new thing, which will translate into "you need to work harder and meet even more unrealistic goals/numbers/etc in order to get your 0.5% raise". For good measure, they will probably force us all back into the office with some fabricated "study" stating that it'll be more productive.
So in a nutshell, the usual BS.
The old girl has lost 1/3 of herself Given the announced restructuring to shape herself up in 2022, the merger is almost ready
The king of Armonk will announce his abdication from the throne
@wel+1ek6hWnA Jazz is so horrible. It was clearly built for managers (especially low ranked ones) but not for software developers. Developers who work at those places that pay developers massively more than IBM pays theirs would never put up with all of this. The reason that git won and Jazz / scm cannot win is: it is friendly to DEVELOPERS. IBM hates its own developers but seems to love its FLMs. Hence all the ways to handcuff developers in Jazz. It is horrible.
Rational - or at least, the parts that used to be called Jazz / Rational Team Composer - were brought back into IBM earlier this year, after previously being hived off (to HCL, if memory serves). So it would be surprising if they dumped them again. I think somebody at IBM suddenly realized that (a) they are pretty good, (b) a lot of IBM teams are using the tools themselves, including Cloud, and (c) since they are native browser-based, they are good candidates for a modest cloud offering.
I don't know what remains of Tivoli. It was dismantled years ago and some bits ended up in Storage Software (Spectrum), they are a hefty maintenance stream but in steady decline. The rest?
It’s the fortune 1000 strategy If you are a fortune 1000 customer worldwide expect to see and be serviced by IBM or a distributor (3 of them) who has mainframe. If you are below the fortune 1000 worldwide, the channel will handle you
I expect Mainframe support and sales to go to our business partner channel. This has been alluded to for a long time, without it being implemented actually. Also, a new (worldwide?) group will most likely be formed within IBM to support Kyndryl HW and SW sales. The few remaining larger clients will over time be services from web sites and a global headquartered sales organization. Local in-place Mainframe sales and support will gradually disappear. Please correct me if my speculations are completely off.
The current Mainframe sales and support infrastructure is currently spread out very thinly, so is probably in disrepair.
WebSphere makes a lot of money for IBM... Does IBM no longer want to make money?
What's happening on Jan 5?
Digital is getting dismantled
@itg+1ek6hWnA internal email that came out Tuesday - you have to be client facing aka sales to received it and be part of software group -or whatever they call them now
"So its has been mentioned" ... um, sources please? Who mentioned this? I've heard none of this so far.
100%... the re-orgs/divestures will continue for ever at IBM... this is how management thrives, keep their jobs and get paid more year after year.
It is a machine that is very well oiled. It will continue until nothing is left standing.