Maybe they're not conned and fooled into "chatbots" and other nonsense as "the future".
https://www.wearetech.africa/en/fils-uk/news/tech/ibm-ends-direct-operations-in-key-african-markets
11 replies (most recent on top)
IBM Ends Direct Operations in Key African Markets
By : Samira Njoya Date : jeudi, 06 février 2025 14:10
Google and the IFC project that Africa's digital economy will make up 5.2% of the continent's GDP by 2025. While this potential attracts some tech companies, others are strategically pulling back.
IBM is ending operations in Nigeria, Ghana, and other key African markets, transferring its regional functions to MIBB, a subsidiary of Midis Group, a multinational IT and telecommunications conglomerate, effective April 1, the company said. The transfer will also affect 34 other African countries where IBM has a presence.
"IBM are partnering with MIBB to launch an alternative operating model, and are still committed to doing business in Africa, this new operating model shows a strong commitment by IBM to a continued focus in Africa. IBM will continue to invest and innovate in Africa, including through the ongoing development of the industry’s most cutting-edge AI and hybrid cloud technology to ensure the success of our clients," IBM said in a statement.
IBM, present in Nigeria for over 50 years, has provided infrastructure and consulting services to critical industries such as banking, telecommunications, oil, gas, and government. The company cited growing competition from companies like Dell and Huawei, combined with global financial challenges, as factors in the repositioning.
In 2024, IBM's consulting business revenue declined 2% to $5.18 billion, while infrastructure sales dropped 8%, the company reported. Overall revenue increased 1% to $17.55 billion, driven by a 10% rise in software sales to $7.92 billion. Its exit comes as cloud adoption expands rapidly across Africa. A Telecom Advisory Services study commissioned by AWS projects cloud usage in Nigeria to triple over the next decade, potentially contributing $30.2 trillion to the country's economy by 2033.
MIBB will take over operations, support, and local client relations while marketing IBM’s products and services, including software, hardware, cloud, and consulting, the company said.
By Samira Njoya,
Editing by Sèna D. B. de Sodji
So this is a win for Africa.
The fact is that IBM is no longer in any position to play "We Are The World", its own name not withstanding. It doesn't sell general-purpose computers big or small, it doesn't sell consumer goods like cellphones, and it doesn't sell the kind of stuff those countries would buy (food, medicine, building materials, stuff like that). According to news accounts, companies like Dell and Huawei ate into IBM's customer base in those countries.
So, in the usual IBM fashion...they transferred over regional operations to a business partner (MIBB). If IBM products and/or services are needed, then MIBB will do the procurement and customer relations and be the intermediary with IBM.
They're not just the wrong shade of brown, they are black. And their culture is completely foreign (dare I say alien ??) to the Tamil culture that Alvind comes from. So, he is not going to blink an eye when cutting and gutting those African businesses. But of course he will never admit to racism when asked, any more than our Dear Leader in the White House. After all, it's just business, nothing personal.
IBM leaving Africa is a welcome move, no need for IBM junk.
AK thinks these people are the wrong shade of brown.
This is a logical extention of the current Fortune 500 (think enterprise) strategy. How many Fortune 500 companies are in Africa? Not many and it pays IBM to forgo some direct relationships to partner them out instead. The savings are at least 50% as IBM’s direct face to face model is quite expensive. Partnerships make more sense when the majority of your customers are small and do not partake in your consulting or enterprise sized HW and SW offerings. It’s just a cost take out decision
It is China's turn to pillage Africa's resources and people.
More surprised to find out IBM was operating there to begin with.
Those countries are not profitable in today's business climate - if you have no money, how and why would you buy Alvind's junk which is only fit for the scrapyard ? After all, nothing IBM makes is of value any more.
Alvind and Kavanaugh are running one huge Ponzi scheme. Wall street will catch on soon enough. Can you say stock bubble ?
For IBM and other technology companies, there is no point to stay in those countries...