Thread regarding IBM layoffs

99 Billion of Cap on the Wall
99 Billion of Cap
Reorg it down
Shop it around
98 Billion of Cap on the Wall

98 Billion of Cap on the Wall
98 ...

0

Can anyone say IP strategy IBM wants out of the HW business

https://finance.yahoo.com/news/ibm-unveils-capabilities-across-infrastructure-130000134.html

SAP is the canary in the coal mine They are saying no recovery till later in 2021 When major ISV’s say no revenue for a while, what does that do to IBM’s current plans? I believe it’s about to get really ugly unless we see some “new” thinking The old plans and management teams are not going to cut it.

"When will the market cap drops below the $100B threshold?" ... It dropped below that today, for the second time this year I believe

As of Oct 26, 2020, the market cap of ibm is only slightly above $100B. When will the market cap drops below the $100B threshold? In a few months, weeks, or days? Will DJIA boot ibm stock when this happens?

There is one thing missing here, and that is - what's the added value of any of the pieces, whether IBM or NewCo. What is IBM producing?

IBM has been playing a zero-sum game for years (decades?). That means, acquiring something that was made by somebody else, rearranging it, passing it further, rinse and repeat. No added value from IBM itself, no unique product hardware or software, just rearranging pieces from the others and trying to sell for more.
Also this spinoff is just rearranging existing stuff.

Zero sum game with expenses (salaries, rents, ...) equals shrinking. Add the financial engineering like share buybacks and the RAs and you may get to $0.01 growth at best.

So unless there is a vision of a product made uniquely by IBM, this will not work no matter how it is rearranged.

You have seen this movie before HP broke itself up and zero value was created HPE, HP, and DXC are not better off today separately vs being together. IBM is going down the exact same path with its announced restructuring so far. If IBM expects different results, they better execute the plan with different assumptions. I believe IBM has an advantage which is Monopoly Enterprise HW/SW stack coupled with enterprise relationships. Add in the Redhat uniqueness and that may bring value. It certainly will get you in the door to compete for Hybrid and public cloud engagements. NOW its all about execution! SO the real question is how do you execute better with the same old management team? REMEMBER these are the guys who took you from 212 to 90 bucks in less than 6 years NOW THATS EXECUTION. (HELL OF A JOB GUYS, HELL OF A JOB) I would say a fundamental part of your reorg strategy has to be combining with a “better” management vision, and better management team. That means either bringing in a new management team, or combining old IBM with a proven cloud leader with an effective management team. Either way, using the existing 10 year old team that has gotten you to this point, is just asking for failure. Think BIG AK because the team you are counting on has a proven track record, and it isn’t pretty. A true restructuring means cleaning house, and that means “THINK” I would add in smaller letters “differently”

IBM is just too big and bureaucratic to move quickly.

There is yet another piece of info not addressed here directly, and that is timing. IBM is going to have to execute this restructuring at a much faster pace then the timeline they laid out. If they wait till the end of 2021 to say “ta da” it will be far too late Covid has put every Enterprise into hyper competitive mode when it comes to business That means get the business no matter what, and we’ll worry about profit later. Amazon and Microsoft are not sitting still. IBM you really need to kick it into 4th gear as the competition is lapping you