Thread regarding IBM layoffs

IBM to sell GTS

I heard ramblings prior to being rAd of a GTS sell off, with the latest mass exodus of cuts to contractors and in parralel clients electing not to resign for essential service solutions, the rumour seems to be coming to fruition... at this point its not a matter of if but when... good luck to all!

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Post ID: @OP+N95aM8R

8 replies (most recent on top)

IBM won’t sell it, they’ll spin it off into its own company. iBM needs to break apart the high revenue but low margin general service businesses from the low revenue high margin cloud and software arm (with its own focused service group).

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Post ID: @cqxkr+N95aM8R

IBM to acquire Redhat. Called it!

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Post ID: @cqxjj+N95aM8R

GTS generates 40% of IBM profit and the greatest proportion of revenue. ?? What's the rationale for selling?

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Post ID: @cabve+N95aM8R

Did @2had predict the future here? Didn’t see the logic then, sure don’t see it now.

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Post ID: @9Ifqk+N95aM8R

RedHat would be a great acquisition for IBM. It is a great linux distribution that works very well in production . RH has also a good working and modern PaaS env . OpenShift ... The 3rd is JBoss software that will solve the problem of Websphere install based that is very often attracted by JBoss . But this is not enought . IBM need also to buy a company like Salesforces which is a major player in SaaS . At this price IBM will come back as a number one player in IT .

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Post ID: @2had+N95aM8R

As goes HPE so goes IBM. GTS (non-cloud) is most likely gone. Power and DASD are most likely toast too. The "legacy" bleeding (20 quarters) has finally come home to bite management. They laid off all of the experienced folks from these three brands to try and save some money. IT HAS, but it comes at the expense of sacrificing relationships. People buy from people they like. IBM is in the process of trying to rebuild relationships on the "cloud" side of the house. They are finding out you can't do it in 6 months, but rather it takes 3-5 years. As such IBM will sell the three brands listed above for as much as they can get. That will stop the legacy bleeding, but shrink IBM to 50-55 billion in revenue. With the cash raised, IBM will buy someone who has established relationships within the "cloud" market. It will not be a direct cloud company, but rather a game changer that gains them Street cred into the cloud marketplace. I bet someone like Redhat. LINUX yes, Cloud yes, relationships with the Fortune 500 yes, CEO who can replace Ginni yes, business plan that compliments cloud services yes, adds to the revenue bottom line. Yes. IF not Redhat, it will be someone like them. IBM has to cut the drip drip drip cord of legacy shrinkage, and change the marketplace narrative that enhances cloud services, consulting, SW, and niche solutions that are developed around IBM labs research

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Post ID: @1csd+N95aM8R

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