Similar to GTS getting spun out last year it looks like GBS is the next target. Easy to see based on how sellers (and senior executives) are being separated by "Technology Sales" vs "Services Sales". Anyone placed under a services sales bucket will be sold off along with the division. Great opportunity for IBM to shuffle some dead weight into services to avoid the cost of packaging people off. So...with GBS gone, multiple platforms up for sale...what's left? Red Hat?
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Jose thats what the Dinobabies thought before the asteroid hit! Bo-m!
Yeah that's what the Dinobabies thought before the asteroid hit! Bo-m!
Any updates here?
Everything with IBM is so stupid hard to use and too expenseive as well. They just don't want to change.
even if we're in 21st centry, but they're still using 20th centry thinking to sold their bundles.
Man I hope they divest GBS. If anything has ruined IBM's reputation it is GBS (screwing things up).
Selling off GBS would be the death knell for IBM They are the guys who recommend Redhat, AI, and application modernization of the legacy (AK’s only strategy) Can IBM slim down GBS where they don’t act as a catalyst ABSOLUTELY, but selling them is not in the equation. Selling all of Infrastructure except for Z and it’s associated support structure makes far more logical sense. In fact looking at 3rd q who were the weak performers Power and it’s cloud (-25), TSS (-5) and TPP (-8) It doesn’t take a rocket scientist to see where IBM has to spend their restructuring dollars
CEO makes a fortune and they don't care about the employees. So really what is there to save.
I think the whole IBM should just give up and close... there is absolutely no hope for this company.
RH should be dumped
The $34b bet is not paying off, cut your losses already.
Yes but no company in its right mind would pay $34B for Red Hat, and we would be left with a bunch of debt with no income to help pay it off.
RH should be dumped
The $34b bet is not paying off, cut your losses already.
GBS is the only part of IBM that's actually growing now and for at least the next 3-5 years IBM needs the FCF that GBS provides.
Longer term @wfr+1eG2ysK9 is probably right, the plan is a breakup and sell off of everything.
Increasingly it looks like the long term strategy for IBM is to wind down the company by divesting the parts, and return the capital to the shareholders.
In a couple of years all that will be left will be Red Hat, the senior execs having seamlessly moved themselves to positions over there, and the IBM brand name itself may be sold off too.
(The Red Hat acquisition always felt like a "reverse takeover" to me.)
I’m in GBS and I am praying that they sell us off. We need someone to come in, cut the letter bands to the bone, and replace all senior leadership with outside hires. I’m convinced it’s the only thing that could fix GBS.
Please list your source for this. What is the ETA? Particulars please.
If they sell off GBS, all that’s left is a declining SW business and a third rate cloud. And RedHat, still out doing its thing. So I doubt they’d do that.
No way jose! GBS stays, it’s how they get to mid single digit revenue growth goal.