If you engineer/support/administer just IBM's cloud infrastructure/Redhat stuff does that mean you will be GBS-IBM?
Then if you support IBM cloud/aws/azure/google cloud/vmware/server support, you will be GBS-NewCo?
11 replies (most recent on top)
@cgm, you’re wrong. There are a lot of supporting pieces of the business, outside GTS, that will also go with the spin-off to enable NewCo to operate as an ongoing business concern....HR, finance, procurement, etc, etc. GTS alone is not an operational business on its own.
Remember GTS - TSS = approx the spinoff (19 billion) So for every piece of GTS that stays, IBM needs to find a piece of GBS, Cognitive, and Systems that goes. That means Redhat stays, and Newco pays a licensing fee. My guess is if you have GTS on your business card with very few exceptions you are leaving. The 2.3 billion of restructuring will trim GBS and systems
Red Hat is tied to GTS like a tight knot right now so both will go to NewCo?
If not, quit pushing the crud on the clients.
You really think TSS is doing good? They lose 4-7% per quarter on an annual basis. That my friends is a going out of business strategy. I expect Systems to absorb TSS, and then everything but Z and legacy OS’s to be sold. That dumps two of your problem children at once, and keeps your monopoly intact. The other nice part of that idea is you can sell to a foreign buyer as there isn’t a strategic (govt) issue. IBM invested a pile and I mean a pile of money into Power Will they take their return of investment over time You bet they will IBM loves annuities Storage profit is almost exclusively buried in the SW which reports to cognitive. They will even throw in their labs to advance P10 and future HW designs including storage along with a promise to buy 10 years into the future (can anyone say GF) The writing is on the wall folks IBM made that very very clear during 3rd q earnings IBM is only focused on enterprise, cloud, and AI Everything else goes
IBM message to the market is everything but Cloud and AI is going to NewCo.
Reality is only a part of the services business is going to NewCo, everything else staying.
Market started figuring this out on Monday.
It’s not that straighforward. Even within TSS there is the MVS group that deals with non-logo product maintemance which doesn’t align with AK’s direction for IBM. To further add complexity, there are IBM subsidiaries that have both GTS and GBS resources.
cgm+17xjLDZw, TSS is doing good?
The confusion will all be on the GBS side, since there are a lot of GBS positions that technically do the same thing as what GTS does. Just with a lot more "cloud" lingo attached to everything.
Logic and IBM do not go hand-in-hand.
@cgm+17xjLDZw It’s not so cut and dry. There are several groups (mine included) where GBS and GTS have merged. Which made the New Co split a huge surprise as I knew many people who had been working for 2 years on combining parts of GBS and GTS. The management of my team is not sure what will happen to the heritage GTS people on my team.
Straight from AK: "NewCo is GTS minus TSS."
If you're not in GTS you're not going to NewCo. If you're in GTS TSS, you're not going to NewCo. If you're in GTS IS, you ARE going to NewCo.
Why are people so confused by this?