Fortunately, I'm counting days till retirement. I know the chances are very slim that IBM will get back on track, and I’m not even sure if it might be too late for that? This company lost its direction a long time ago and it would take radical changes to fix things here now. That’s just my opinion and I hope I’m not right. I would like IBM to restore its former reputation.
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We just need IBM to go away completely. There is no hope for this company.
…and in 1993 they brought in Gerstner and he made the hard decisions to bring the company back. We need the same now. They need another Gerstner to kick the deadwood executives who are clueless!!
1SAG Infrastructure is kinda stuck at 14 billion for the next year to year and 1/2. TSS is 6 billion and shrinking by 5% a year. (this is mostly due to smaller boxes being abandoned to Intel and partner hosted MSP’s) Z is 4 billion when the product cycle is old, and 5-6 billion when the product cycle is refreshed. NO it is not shrinking double digits 2 out of three years, but is in a slow decline. (lets say 3-5%) Power and storage are approx 1.5 billion each. Power continues to shrink 5-15% per year while storage follows the Z product cycle for the most part, but has a shrinking trend line due to scaleout products shrinking (lets say 5% per year) IBM cloud (IaaS) is growing BUT for every sale they make, they cost HW sales the same amount or more due to multi-tenancy of the cloud boxes. Finally asset recovery is shrinking due to IGF withdrawing from this marketplace. So what does 2022-2023 hold? Revenue will be flat due to Z product refresh making up for the shrinking of everything else. Given that forecast expect IBM to look to partner with a manufacturer to help cut their HW manufacturing costs.
Their "relentless" desires for innovation aren't backed up by making up for 5+ years of no salary growth, no bonuses, no nothing. === no incentive. Fool me once - shame on you; Fool me twice - shame on me.
It's too late already. They had so many chances and kept f***ing them up. Leadership also tried to change the management chairs around but repositioning incompetence to the next is not exactly a smart move, is it? Should have shown them the exit door.
IBM will continue to break apart and consumed by other companies. The IBM we loved loved and admired was destroyed by SP and GR (the worst…age discrimination…what a POS she was!!!)
The iceberg has been hit. I figure 15 min equals 1 year. Current over/under is 10. Exemptional job by Executive "Leadership" and the Board of Directors. You should be proud of yourselves! Your legacy will be legendary case studies on the most ineffective, if just not defective, management in so many ways in history. Oh wait, and still get rich in the process.
IBM Infrastructure was $14B in Revenue last year. That includes Z, Power, Storage, TPP, and TSS. Z by itself is probably <$10B now. It shrinks by double digits 2 of every 3 years when there's no release. "Monopoly" and "throws off piles of cash" mean nothing when the base is shrinking into irrelevancy.
It will be late 1970’s or early 1980’s IBM. Mainframe centric throwing off a pile of cash from the monopoly that mainframe is. Open/intel is cash flow poor due to infrastructure investment (HW and SW). Data centers cost real money. Folks will argue intel is a commodity, but when you host 1000’s of intel servers, the costs add up. There is yet a second way to look at this. While Google, Amazon, and Microsoft compete with each other to win “large engagements”, Niche offerings have pricing power due to being Niche. Mainframe falls into that category
it will be just another HP or fujitsu - not a main player
In 5-10 years IBM will be a division of one of the hyperscalers. FCF wise IBM is just too attractive. Let AK finish up the downsizing first and then the games will begin
Yep, time for this company to go the path of Watson, the downward spiral.
Never happen. IBM will be done in 5-10 years.