https://www.theregister.com/2024/05/20/red_hat_prunes_middleware/
12 replies (most recent on top)
"When is AK moving Red Hat development to India to keep his supersized bonus (disguised as cost savings) to the bare minimum?"
He will be able to double his DEI bonus.
If there is 0 loyalty to the US, the US should give them 0 resources.
People need to start monitoring who is doing this - the ceo and the majority shareholder blackrock. Frankly the so-called US enemies don't hurt the US middle class more than the 2 previously mentioned folks. It is just that blackrock buys congressional critters.
IBM deploys power much more like the mainframe This is most likely a request from the large ISV’s. IBM continues to manage Enterprise Power into the “Niche” corner.
https://www.theregister.com/2024/05/22/ibm_power_virtual_server_private_cloud/
IBM is treating scale out power like folks treat TV’s. Just replace them when they break as they become commodity items. The only way IBM will be able to monetize scale out is to license the IP (sunk costs). Due to the low volumes Power scale out is now generating, a commodity manufacturer will most likely fill the assembly,marketing/sales, and servicing roles. IBM will move into the DuPont mode Design, and license it. There’s profit to be made, but IBM’s high current overhead su-ks all of the life out of power.
Even the 'Enterprise' Power's days are limited. Some day soon SAP (or its replacement) will figure out how to write an ERP system that can be properly distributed over commodity hardware and half the Power market will vanish.
It's not like SAP wants to be trapped running on the most expensive hardware options in the field, they would love to be able to sell into XEON clusters instead.
Actually, in reply to the translation replies, you should be translating Blue Hat, because Red Hat has gone Blue.
The power install base falls into two buckets One profitable, and one not so much
- Enterprise boxes (E1080’s) Much like mainframes they generate revenue and profit for their large ISV users and IBM. It’s an annuity due to performance, reliability, and technology that Intel can’t deliver, so the ISV’s embrace it, and accept the higher costs.
- Scale out boxes (the rest of the power line) The revenue and profits here are shrinking due to ISV’s embracing Linux on Intel. Yep Intel is good enough when it comes to performance, reliability, and technology. ISV’s have voted with their feet, and at least 50% of previous “power ISV’s” now only support Intel solutions. This slow bleed means IBM’s high overhead is unaffordable when it comes to low end power. (you can’t raise prices when competing in a commodity market) Look for a commodity Intel manufacturer to become the low end Power maker/marketer/servicer with IBM licensing its HW and SW IP to whoever they partner with. NOTE IBM is investing in the performance, reliability, and technology of Power anyway to keep the 1080 competitive. Licensing the low end HW and SW IP including low end design just becomes a profit center for the 1080 product line.
Power development isn't strategic any more, it's more like squeezing the last life out of a dying product. Power dev being outsourced just shows that you need to stay on the growth products and stay away from the declining products.
@1ayl, it is Laal Topi
We will soon announce the name change to Red Topi
@dqw don’t fool yourself, both Power development hardware and software have moved to India. You might have a couple of years, the writing is on the wall.
Strategic redhat coding is not going anywhere outside the US. IBM has way too much invested in the strategic code and will not risk letting it get pilfered. Sustain code on the other hand can easily go to a lower cost coding center
When is AK moving Red Hat development to India to keep his supersized bonus (disguised as cost savings) to the bare minimum?