In its last few quarterly results announcements, IBM has trumpeted unexpectedly strong growth in its mainframe business, and that's helped the technology titan to just-about deliver promised mid-single-digit revenue growth in constant currency. But in its Q3 results announcement on Wednesday, Big Blue revealed mainframe revenue fell 19 percent – and that overall growth came in at just one percent or two percent in constant currency.
https://www.theregister.com/2024/10/24/ibm_q3_2024/
https://www.theregister.com/2024/11/20/kyndryl_little_new_business
contains these nuggets that do not bode well for IBM:
"Nobody has as many mainframes as Kyndryl does"
...
Kyndryl is trying to get customers off mainframes and into the cloud.
Oxk I think you are not paying attention, as their strategy (lower costs) is playing out exactly as they forecast since Jan. SW=up (note all SW buys including redhat contributing significantly) Consulting = flat, BUT margins improving significantly Infrastructure = down due to business cycle (eg mainframe and power due for refresh). Your statement of “selling a business EG lowering cost” does have some truth as the CFO said cost savings had been improved to 3.5 billion vs the forecast 3 from last quarter. That means another potential 6.5k head count reduction. NOTE this is on top of the 400 million allocated in 2nd q and the 300-350 million booked yesterday (eg 725 million would equate to approx 9.5k headcount reduction which is very close to the 8k that’s been reported in the USA). The strategy of lowering costs seems to me to be playing exactly as advertised
It is the end of the z16 cycle which by the way has been selling very well overall. 2025 is probably when the next Z machine is coming out... People need to stop this sh-t about mainframe dying. Mainframes will still be here 20+ years from now.
Guess the beloved Alvind and the pig Kavanaugh have to start chopping heads at the very place where they assumed maximum future growth. Sorry boys, but your strategy does not look like it's working, now or in the future. Maybe you should consider selling another business unit to pay for Alvind's much anticipated multi-million bonus in early 2025.
There are no sacred cows at Indian Business Machines - pun intended !