Thread regarding IBM layoffs

Microsoft Cloud Growth: 59% IBM "Cloud" Growth: 6.4%

https://www.bloomberg.com/news/articles/2019-10-23/microsoft-sales-profit-top-estimates-on-cloud-azure-slows

Microsoft is also starting from a much larger cloud base, and IBM's "cloud" number includes a bunch of legacy software that has nothing to do with cloud.

Amazon releases their numbers later today.

How is this performance considered acceptable?

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Post ID: @11GjkFBi

9 replies (most recent on top)

And those percentages are of a vastly larger base....look at the actual dollars - Microsoft grew more than ibms entire revenue.

As to the idea that Ibm should get back into hardware to compete in cloud...that'd be like saying at&t should get back into making telephones to compete in mobile.

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Post ID: @11GjkFBi-6yec

As if they had a chance. My gawd, we are playing around with Agile, Mural, Slack vs our jobs.
IBM is all about wasting money not making it.

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Post ID: @11GjkFBi-5rag

How embarrassing IBM could not even get down selected after all the investments in cloud. This tells you their is a cultural and leadership issue with IBM in that they cannot effectively recognize and embrace change. This is just poor senior leadership. No other explanation.

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Post ID: @11GjkFBi-4nnt

Pentagon hands Microsoft $10B 'war cloud' deal, snubs Amazon

https://abcnews.go.com/Politics/wireStory/pentagon-hands-microsoft-10b-war-cloud-deal-snubs-66541024?cid=clicksource_4380645_null_headlines_hed

Bidding for the huge project, known as Joint Enterprise Defense Infrastructure, or JEDI, pitted leading tech titans Microsoft, Amazon, Oracle and IBM against one another.
Oracle and IBM were eliminated earlier in the process, leaving Microsoft and Amazon to battle it out at the end.

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Post ID: @11GjkFBi-2agi

Here is a crazy thought. Can we say as goes Intel HW so goes the cloud. IBM left the Intel market due to margins. For the most part that’s when IBM started declining at warp speed and cloud left the building. Yes IBM tried softlayer, but how did that work out (not too good). Ibm stuck with Z and Power due to margins, and as such they have missed out on the hyper growth of Intel, and thus the cloud. IBM has now adopted a strategy of trying to make their proprietary HW more cloud friendly via buying Redhat. Hopefully their 6% cloud growth brings the higher margins that their proprietary HW brings

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Post ID: @11GjkFBi-1oav

https://www.forbes.com/sites/louiscolumbus/2019/04/07/public-cloud-soaring-to-331b-by-2022-according-to-gartner/#e13eaab57390

says "Gartner predicts the worldwide public cloud service market will grow from $182.4B in 2018 to $331.2B in 2022, attaining a compound annual growth rate (CAGR) of 12.6%."

My back-of-the-bar-napkin math says IBM growing cloud at 6% means the tide is rising at 12% but IBM cloud ship is sinking at 6%.

In other words, IBM cloud market share is shrinking, but the cloud pie is growing faster than that shrinkage.

Clueless mismanagement.

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Post ID: @11GjkFBi-bgv

Even the 6.4% figure is questionable, considering all the "creative" accounting they do by trying to cram other business units (that have absolutely nothing to do with the cloud) under that umbrella and claim it as revenue growth in their cloud business.

Yeah, Ginni, we're wise to you.

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Post ID: @11GjkFBi-dec

Amazon disappointed with "only" 35% growth in cloud revenue.

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Post ID: @11GjkFBi-npc

Hahaha

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Post ID: @11GjkFBi-gzk

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