Thought some of you may find this interesting -
https://www.mbiconcepts.com/comparing-net-income-per-employee.html
2 replies (most recent on top)
Share price will hit $80 and IBM will get taken over
If this chart doesn’t scare you, you are not paying attention. The crash of revenue under Ginni is worse that Akers (-188%). NOTE the chart only goes to 2017. 2018 was slightly better due to Z saving the day in early 2018. The bottom fell out at the end of 2018 and 2019 has been a disaster Ginni is following the age old IBM strategy of “saving her way to profitability”. Problem = it’s a death spiral when you save your way, WITHOUT any other change in business plan. Gerstner saved his way, but had a plan to move to Services. Ginni doesn’t have a plan as her strategy has changed 3 times in the last 4 years (does agile, lean, and camss) sound familiar. NOW Redhat will save the day via LINUX. NOTE to Ginni. IBM should have moved to LINUX 10 years ago by investing in the ISV’s They didn’t, but instead de-invested in all ISV SW (LINUX, AIX, OS/400) and it resulted in the industry divorcing IBM. Will the new “cloud” strategy save them. Perhaps, but they are a lap down in a 4 lap race (remember that’s for public cloud). If IBM changes the game to Hybrid cloud, and they exploit their Monopoly power (System Z, and Power enterprise) they may stand a chance. Again it’s a balance of expensive experienced manpower vs cheaper less experienced younger manpower. What will IBM do? To date IBM has opted for cheaper less experienced are netted out an accelerating declining revenue stream. Will they change strategy. Only the IBM board knows that answer