Tech has the knowledge, no need for Consulting
4 replies (most recent on top)
Consulting exists to justify a modernized enterprise
Infrastructure exists to develop enterprise Technology
SW exists to purchase innovation around enterprise
Everything else will slowly but surely get sold or partnered off
It would be logical to sell Consulting, but IBM needs the FCF that it provides. Consulting isn't growing and it's nowhere near as profitable as Tech, but it still throws off A LOT of cash. Cash that IBM can use to buy companies like Red Hat, Hashi, and Confluent to make up for the fact that Tech hasn't really developed a new product in over 20 years.
Tech can implement technology but doesn't have the skills to do the people and process parts of the solution, nor to do complex integrations with non-IBM tech. They need implementation partners, of which Consulting is a favored one, to do that.
Hahaha tech does not have the knowledge! They think they do but oh god no. Horrible decisions and choices made by the folks who “have the knowledge” and tons of gate keeping.