Is it true systems is going to be a NewCo? My colleague were saying this is insiders news. Because systems consist of infrastructure and storage, it more align with infrastructure portfolio. So they are thinking to merge it to hybrid cloud, kyndryl or a separate NewCo. It suits all portfolios, so it can go anywhere and IBM will mainly focus on AI and hybrid cloud strategy only.
Is this true information? Where is it going to be and from when?
IBM will end up only as a mainframe company... Once the Execs figure out that Red Hat is not working out, they will jettison it for some $$$. Then they will tell you they just re-invented the IBM company as THE mainframe company!!! By then, the company will be a 15 Billion company.
@vhs+1b1CiCSx GBS has no desire to "suck in mainframes". Outside of AMS, 90% of what GBS does has nothing to do with mainframes.
Not true. No way they’d sell mainframe and systems.
If and it’s a big IF, IBM spins off systems, it will be everything except mainframe. GBS will suck in Mainframe and systems will be no more. Kyndryl becomes the “shrinking” elephant graveyard for revenue, BUT IBM can adjust the revenue to whatever they choose as they are the only IBM HW game in town. The same applies to the older OS’s. NOTE TSS will follow the HW to where ever it lands. IBM’s game plan is two divisions GBS and Cognitive
the whole hybrid cloud model is dependent on mainframes customer base so it would be stupid if ibm sold the only business they have monopoly in (even though it's cyclic and not growing) and can price however they like (high margins).
Also if someone else buys mainframe business why would they allow any ibm sw to run on it?
There goes the whole openshift+ linux argument.
They can very well sell power and storage (again except mainframe) if they can even find a buyer.
plus as the other user said they're probably showing some software sales as hybrid cloud sales because systems also has zos and other sw.
Ibm is a mainframe only company, they have failed in almost every other business
I agree with you they are making up cloud revenue numbers. Actual cloud revenue would be pretty less. However, GTS was having 25+ billion$ revenue in 2020, still it was split. Not sure, systems would be having that much. I even doubt cloud wouldn't have that much of revenue. So can't say about any strategy.
But I pity on IBM's strategy makers. This shouldn't be like this. If they want to grow there should be only one company and services. It's like just assume Amazon is divided into two totally separate entities Amazon e-commerce and AWS by renaming Ayndryl, something. Do you think they can grow by doing this at all?
They are just trying to make fool of share holders by removing components with decreasing revenues to prove their cloud strategy.
Well, if that is the case, then there goes a large revenue component? It appears Mainframe (HW, SW and maintenance) is still pretty profitable. I also think a lot of this revenue is engineered to look as cloud revenue? So I doubt this. But I have been wrong before on where IBM Is headed.