Security is gone, Simply stated, people cannot get hired in a cyber job. Going much further, they argue that IBM (who discuss millions of unfilled jobs) are pushing their own training agendas, certifications offered, want to boost certain company stock prices or have other reasons to encourage this “abundance of cyber jobs remain vacant” narrative, even though it is not true, in their opinion.
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Just go back to any previous quarter earnings report and you can see where each product, and/or service, is going to land. Commodity products or services (low margin) are gone. IBM has never and I mean never played well when margins are low. A better way to say this is any Business to consumer product is gone Can anyone name a business to consumer product that IBM has done well with? (anyone, anyone) EXACTLY IBM isn’t good with business to consumer because their overhead k–ls them. So let’s look at your question
Security products (Business to business thus good, profit margins in the 3 digits thus good, growth in the close to three digits again thus good, market perception outstanding thus good OLD IBM will keep it and Newco gives up what it might own)
Storage (Business to business thus good, profit margin single digits thus bad, growth single digits thus bad, market perception = commodity thus bad IBM will dump it. STORAGE does have a rich IP portfolio (mainly around mainframe) which is unique vs their competitors, thus IBM will license the IP
Power (business to business thus good, profit margin single digits thus bad, growth negative thus bad, market perception = NICHE product thus bad, IBM will dump it Power has been decimated by IBM management over the last 6 months All “future” investments (LINUX, Open, accelerators, design, etc) have been reduced or stopped Logical conclusions is Power is for sale
If you mean the Storage and Security products I don't see any reason why they would be part of a services delivery business.
My guess is security will stay with non NEWCo as they have very good margins and are growing rapidly. IBM has never done well with low margin businesses. Storage, I have no opinion as I know little about that piece of the business.
25% will probably go to the new company and the remaining will get laid off.