I believe it all depends on their ELT - when it's completely formed - and whether they'll continue to follow the IBM way or try to change things up and hopefully make better decisions. Frankly, I wish I was a part of it. I'm thinking that it can either improve on IBM or stay the same. I highly doubt it can get any worse than here.
12 replies (most recent on top)
"If you're stuck using tools like ansible,"
Can anyone elaborate on this?
As a mainframer, I've not used it yet. But it seems to be a darling of the "Agile Crowd" as it were. Or at least the fans of not-mainframe, FOSS, etc.
"It turns out that cloud is not actually cheaper - but it is more flexible and faster to deploy. "
Interesting point... can anyone back it up with references?
I've often asked how adding another company into the mix could possibly be cheaper?
Granted... if you only need a drink or two...pay by the drink might be cheaper, than fronting an entire data center.
But at some point it makes sense to own rather than rent.
If the usual models apply... would seem the largest users might be better off owning than renting?
(I.e. using a transportation model... need to go some where rarely... Taxi makes sense... need to drive every day... owning the car makes sense.)
I would say you will know soon. With IBM distributing their non-compete paperwork, that implies the spin-off is fairly close.
Does GTS walk away from that many engagements that are non-IBM equipment?
Kyndryl will be better. The handcuffs are coming off some very smart people within GTS. There will be more in Country decisional power and discretion. Better tailored solutions not based on IBM technology where it makes sense. Kyndryl or IBM success moving forward is not dependant on the other failing. They can both become successful. I’m actually optimistic. And I’m a glass half full kind of person.
Hopefully Kyndryl will refocus on the on-prem part of hybrid cloud. Not all customers want to be 100% cloud.It turns out that cloud is not actually cheaper - but it is more flexible and faster to deploy.
If you're stuck using tools like ansible, things will get worse IMO.
Teams that detach themselves from the mess might be better off.
Most likely no. As long as 3rd world labor is willing to underprice innovation, and bandwidth remains cheap, you should continue to expect every outsourcer in the world to shrink at a 4-7% shrink rate. NOTE this is a two edge sword If 3rd world labor lowers their rate, work moves offshore. If companies innovate they hire less on shore as innovation replaced the on shore labor. Either way on shore labor is being targeted and will continue to shrink.
Kyndryl employees will always carry the stigma that they were the jettisoned, low margin dead weight of IBM. Despite what people may think of IBM, approaching a potential new employer as an ex IBMer will always trump an ex Kyndryler!
It’s the same incompetent IBM leaders running it. Of course it’ll be worse. IBM is getting rid of the dead weight and will be a leaner better company after the split.
I expect offshoring and other cost cutting to accelerate.
If we accept :
- kyndryl revenues are declining 3-5% / year
- "So goes revenue, so goes headcount"
Then it seems reasonable to conclude RA's and offshoring are coming.
At least not bad management like current IBM board.
Yes. ....or P-t / Fire situation.