Thread regarding IBM layoffs

Don’t forget Cloud’s definition is in the eye of the beholder. Wall Street doesn’t define cloud and the three giants (Google, Microsoft, and Amazon) all define and report cloud differently. We can conclude from this, that each cloud company (including IBM) have all standardized their business plan around a different definition, and as such around a different go to market strategy. IBM has gone “all in” on their definition of Hybrid cloud which is built around mainframe and on prem processes. Embracing on prem results in a corollary that is modernizing legacy Cobol, writing new front end engagement processes including AI built around LINUX/Redhat, and engaging consultants who can guide you thru this process while continuing to engage your 30 year investment in older database technology. NOTE you do not see any business model that abandons those older databases, but rather exploits them to drive IBM’s monopoly. It’s a good business plan, as what CTO is going to roll the dice on off platforming? YES some will take the leap, but most will take the safe plan and embrace IBM’s strategy. What’s the up side IBM gets steady revenue for the coming 10-20 years. What’s the downside IBM doesn’t grow So what’s AK to do? He has to figure out how to leverage the steady revenue stream to catalyze revenue growth from the non-legacy opportunity. That means that IBM has to cut deals on Google, Microsoft, and Amazons areas of expertise to gain growth. The same can be said to be true for the big three. Amazon, Microsoft, and Google need to cut deals on mainframe to gain growth. So far the big three have found it easier to battle each other (stealing customers and growing new workloads) and let IBM play in its own steady state pool as they have not been able to grow the non-mainframe cloud envio. Given the current state of affairs (IBM sliming down and the big three letting IBM dominate the mainframe market), it’s just a matter of time before one of the big three decides to fold IBM under their wing to capture IBM’s definition of cloud. Remember IBM’s definition of cloud is FCF rich and buying FCF sometimes is far cheaper than trying to compete for that same market place.

IBM, ... your competitors are winning on price and incumbency

One problem is that arrogant IBM still acts like it is the incumbent, not the underdog.

Holy cow Batman, IBM is left standing at the corner again!!!

I’m not trying to make excuses, BUT did anyone really think IBM had a shot here? Boeing was never a strong IBM install base (think mainframe), but rather a very large collection of workstations and distributed apps.. IBM’s best shot was going after the AI, but when you are not the incumbent it’s hard to crack PLUS IBM’s current AI push is into Z16. That means Power and Intel solutions via AI are second class citizens. The splitting of the contract confirms that Boeing went with what they felt comfortable with. IBM’s hybrid (on prem) offering didn’t play, because Boeing is moving in the opposite direction (outsourcing). As I said above, NOT trying to make excuses, but IBM never really had a shot. One lesson to take to heart here is if IBM can’t start winning some of these engagements, they are doomed to muddle along. NET NET IBM, the marketplace is not valuing your current offerings and your competitors are winning on price and incumbency

IBM is intentionally becoming irrelevant in Fed sector to pave the way to be acquired by an India based hyperscaler

Great job IBM Pub/Fed team! Keep letting it all slip away. Wake up IBM your "Leader" is lost outside of NY.

[Article in the OP is quoted completely below].

By: Al Root
Updated April 6, 2022 10:43 am ET / Original April 6, 2022 10:42 am ET

Boeing has selected the companies that will help it to move some of its business processes from data centers into the cloud, just as many other businesses are doing.

Boeing (ticker: BA) said Wednesday that it had awarded new business to three of the major cloud players: Google’s parent Alphabet (GOOGL), Amazon.com (AMZN), and Microsoft (MSFT).

Boeing will shift hundreds of business applications, previously managed in Boeing data centers, to Google cloud, making it possible for it to use Google’s analytic tools.

The commercial aerospace giant will use Amazon ’s Amazon Web Services to strengthen its engineering and manufacturing processes. Boeing also awarded business to Microsoft to “leverage the Microsoft Cloud and its [artificial intelligence] capabilities to update its technology infrastructure and mission-critical applications with intelligent new solutions that are data driven,” it said.

All three news releases describing the deals read similarly. There appears to be enough cloud business to go around. Research firm Gartner estimates that more than half of IT spending will migrate to the cloud by 2025. That amounts to roughly $2.9 trillion in spending over the next four years.

That is a huge sum, but the announcements don’t appear to be stock-moving events. Boeing shares were down 1.9% in early trading, while the S&P 500 and Dow Jones Industrial Average had fallen about 1.2% and 0.7%, respectively.

Microsoft, Amazon, and Alphabet shares were off 3%, 3.5% and 2.5%, respectively.

Shares are weak for a second day following hawkish comments from Federal Reserve Gov. Lael Brainard. In a Tuesday speech, Brainard said “it is of paramount importance to get inflation down.” That means higher interest rates and less monetary stimulus.

Coming into Wednesday trading, Boeing stock was down about 9% year to date. That stock is still being driven by Covid-19—which affects global air traffic, and thus demand for jets—and the 737 MAX. The MAX was grounded worldwide between March 2019 and November 2020 following two deadly crashes inside of five months, forcing the company to stop delivering the planes to buyers. Boeing’s earnings and cash flow are set to recover as MAX deliveries pick up relative to 2021 this year.

Coming into Wednesday trading, Microsoft, Amazon and Alphabet shares were down about 7%, 2% and 3% year to date.

Given the fiasco of the 737 MAX, I'm not interested in anything Boeing does any more.

IBM is planning to shutdown its Cloud operation at some point in the future. IBM is not competitive in the Cloud.