Thread regarding IBM layoffs

Kyndryl

Does anyone have updated information on the Kyndryl transition? It appears that IBM has formally transitioned some folks over to Kyndryl. That should mean Kyndryl will be going public very soon. I would just like to know what the new Kyndryl looks like. I suspect IBM will or has moved 100k worth of folks over, and MAY still have some clean up to do (perhaps another 20K or so). Large transitions like this are moving targets, and as the marketplace has evolved since last Oct, I believe so has IBM’s intentions on Kyndryl

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Post ID: @OP+1cNH4z3F

7 replies (most recent on top)

TSS landed where it needed to land In systems It will be a drag on systems due to its shrink rate of 5-7% per year. NOTE it’s margins are good. TSS reflects IBM’s overall problem with systems. Good margins, but shrinking market share due mostly to a shrinking scaleout market, and the commoditization of storage. So what’s IBM to do? They realize Enterprises will stick with them and have tailored their Hybrid on prem strategy toward that goal. ALSO note enterprise is where the money is. In general 80-85% of IBM’s HW/SW revenue/profit flows thru Enterprise engagements while only consuming 15-20% of the investment/marketing/sales resources. Non-Enterprise engagements on the other hand require 80-85% of the investment/sales/marketing resources while generating only 15-20% of the revenue/profit to the bottom line. As such if you were AK, would you continue to invest in non-enterprise, or would you off load it to a 3rd party and just harvest IP licenses out of it, while encouraging RedHat engagements. The hand writing is on the wall. IBM can’t afford to keep scale out, and will have to partner it off. It’s not because it’s not good, but because it’s shrinking quite quickly, and IBM just doesn’t have the resources to support it like they did in the past. I expect a GF type deal with a partner to share costs, while IBM tries to make the best out of a shrinking 20 year legacy investment. Otherwise the bean counters will recommend ki----g off the shrinking parts.

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Post ID: @2rsv+1cNH4z3F

So far the only real change is being able to use Outlook for email instead of Notes or Verse.

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Post ID: @2eyn+1cNH4z3F

Is the last comment in reference to TSS which just merged with Systems? Seems a TSS sale or Indian company buyout rumor floats by every few months.

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Post ID: @2ahh+1cNH4z3F

Don’t be surprised if another shoe drops. IBM split Kyndryl off for infrastructure with decent margins. They will be tied at the hip with the mother ship Hybrid IBM as infrastructure is quite essential to IBM’s customers with on prem IBM HW and IBM SW. There is another piece of IBM, that AK realizes he can’t keep, and that’s even lower margin services. (Labor intensive services like help desk) Those services are needed via enterprise customers, and IBM is trying to structure a finders fee relationship with one of the Indian body shops. IBM’s goal is to extract a very small marketing fee for doing the front end marketing in their enterprise customer set. It’s the BP relationship turned on it’s head for labor intensive engagements. Remember Hybrid IBM’s goal is to show very good margins to Wall Street showing that the turn around worked. That means all middle and low margin engagements have to be spun off. Expect Hybrid IBM to land in the 150-160k head count range

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Post ID: @1xrh+1cNH4z3F
we're stuck using the same cr-p tools and processes so far

Not a surprise. IBM is simply slicing itself in half, so there will be two overbloated shrinking companies instead of just one, with the same baggage and infrastructure. The whole exercise is a pointless waste of time and money and will just lead to even more inefficiencies.

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Post ID: @1bwn+1cNH4z3F

we're stuck using the same cr-p tools and processes so far

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Post ID: @tls+1cNH4z3F

Suggest posting on the Kyndryl board here --
https://www.thelayoff.com/kyndryl

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Post ID: @sla+1cNH4z3F

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