Is it going to get better? What do you think will happen over next few years?
21 replies (most recent on top)
Another goofy post with immaculate grammar and spelling. Gotta wonder who exactly is so interested in fishing for our commentary. Journalist? Insider?
"... Though plenty of tech companies have disappeared along the years... so why not IBM? ..."
It's financial "mass" and mainframes.
Though plenty of tech companies have disappeared along the years... so why not IBM?
In 5 years...still making billions in revenue... only question for us at this level is... will we still have jobs? LOL!
IBM isn't going anywhere...
Did GM, Chysler, etc. go anywhere? No, still with us... A few financial firms may have disappeared a while ago... but just a guess... IBM isn't going anywhere... they aren't heading to bankruptcy, etc...
yeah, at some point when you show your resume, someone will say: "What is IBM? I am not familiar with that company!"
Under the section of my resume which reads "former employment."
IBM will continue to be parted out and the remnants rebranded. IBM as an entity will cease to exist
The IT Industry is at a crossroads. Cloud will rapidly commoditize over the next 2-3 years and make IT infrastructure look more like a plug in the wall electric utility service. It will probably be a tough business to make money in even if IBM is able to get better market share in the public cloud market. IBM is facing an existential crisis in terms of long viability to grow the business or maybe even stay in business. It seems like IBM needs to get into end user SaaS software in a much bigger way or else its opportunities for growth are limited. Tough road at this point.
R-E-T-I-R-E-D.... R-E-T-I-R-E-D.... R-E-T-I-R-E-D.... YEAH!!!!! Much sooner than 5 years!!! Started at IBM in the 1980's and have survived 548 RA's but none were "LAYOFFS" LOL :)
Its obvious we won't do that well with Cloud compared to our competitors. We will claim growth but that is because the pie is growing so fast that we can make those claims; however, our percentage will continue to shrink. Products like storage will be sold off as, power will be gone after P10, what is left will probably be sold off to a private equity fund where it will squeeze a profit out of what is left as it cuts to the bone what is left. Very predictable.
IBM - A TCS company
I work in Cloud. Believe me, we have no idea what to do. Strategy changes every couple months and products come and go. Desperate.
Hopefully in history books 😂
IBM is not a serious player in Hybrid Cloud, never was.
AK is delusional
https://youtu.be/u1LsVZN6wzg?t=2129
Cloud is IBM's nemesis, it's k–ling them.
Fair value of stock should be half of what it is now.
A $10B company.
In my rearview mirror
The question really is can IBM exploit their monopoly power to raise profits faster than the cloud goes completely commodity. Newco needs a major haircut to compete. IBM is in the process of cutting (just look at Europe) IBM will continue down that path, or sell Newco off with the acquiring company doing the cutting, with the price of Newco baking that cutting into the deal. New IBM is playing in a very fast growing marketplace (cloud). The issue is public cloud has already morphed into a commodity offering due to 5 major players competing. Hybrid cloud is still unique at least from a mainframe point of view, so it really boils down to can IBM exploit that. Remember for every Hybrid cloud IBM closes there is an ELA that doesn’t get sold. Redhat may be the catalyst to spur new engagements, but can IBM execute. If yes, then we’ll see FCF grow at 4-6%, BUT IBM has a mountain of debt to pay off (Odds of growth 20%) If IBM loses the legacy at the speed it grows the Hybrid, we’ll see flat earnings UNLESS they continue to cut headcount (odds 60%) If they can’t get their act together, they will continue to shrink until someone decides to take them over. Most likely another hyperscaler who is better managed. (Odds 20%).
yeah, by 2023 AK will have to find another "trick" to try to fool the investors since by then, revenues will STILL have not grown... not to mention, he still needs to keep his job for a few years to keep on cashing in on the millions that we all agree he does not deserve!
Realistically, how is it going to get better? Revenue is going to keep going down...
2019 - 77B
2020 - 73-74B
2021 - 52B (taking into account the NewCo split early)
2022 - 50B
2023 will see another divestiture since IBM can't get its act together, so impossible to estimate revenue
And it will keep on going... until this company is ONLY a mainframe company with 20+B revenues.
There will be a gradual decline