Thread regarding GE Digital layoffs

The main problem is that GE Digital does not truly generate any revenue

All the products under GE Digital (especially Predix) are now toast with champion grifters Immelt and Ruh gone. they were using GE Digital to try and cash in on tech trends (IoT, edge computing, machine learning) but failed miserably compared to companies that actually knew what they were doing, not just building some sh--ty app store, shipping industrial connectivity software 2 years too late, and pivoting to containers/latest devops craze after hearing about it from their kids.

the main problem is that GE Digital does not truly generate any revenue, it's 95% internal (basically forced) service to BUs, 5% actual "wins". GE needed to follow the Amazon/AWS model of each internal business unit competing with/pushing one another. instead you got f---ed over by cronyism and the good old boys network. GED isn't reported out as an actual BU in the filings. that's when you know you're toast unless immelt actually delivers the growth from $5-20B in revenues he promised in 2015.

now the cuts begin on the failed digital project. get out while you can

Reposted from @WBZcebU-4bok

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Post ID: @WFQk7KD

39 replies (most recent on top)

There isnt going to be an IPO. Byrne to rebuild from ground up.

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Post ID: @WFQk7KD-3fxit

An IPO of Predix ? Would certainly be a surprise to many

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Post ID: @WFQk7KD-3datx

Yes, post IPO cap GED >> GE

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Post ID: @WFQk7KD-38zec

missing hot IPO window for the spin....

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Post ID: @WFQk7KD-35hio

Right. And no Grid customers would actually ever use Predix or other portions of the non-grid offering, very limited cross selling. Essentially two niche businesses with little standalone value

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Post ID: @WFQk7KD-33toe

Grid SW is more real of a business than Predix

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Post ID: @WFQk7KD-2Zrsz

Arent those grid products Aveva legacy only installs

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Post ID: @WFQk7KD-2Yenq

Based on other posting to section on this board, there aren’t any real p/l associated with digital. So what are walls and Martin ‘running” and why do you need 2 mgrs

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Post ID: @WFQk7KD-2Tzjp

Martin no permanent ceo

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Post ID: @WFQk7KD-2Jubu

Martin is close to a done deal

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Post ID: @WFQk7KD-2iyvt

Is Steven Martin locked in as the new CEO of GED? Or are they still looking?

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Post ID: @WFQk7KD-2grnz

Isnt this a simple readiness of spin, who the management is (and their capabilities, if any) is less an issue at this point.,,,

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Post ID: @WFQk7KD-2gxvi

Normally ... not supposed to break out product line profitability and post...

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Post ID: @WFQk7KD-2fiag

Hate to burst everyone's bubble but Walsh will be running GE Digital/NewCo's Commercial org as well as still in charge of the segments' largest and most profitable Grid Solutions line.

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Post ID: @WFQk7KD-2airl

Sales role Emerson

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Post ID: @WFQk7KD-26wce

Walsh w GE? Or Emerson ? Position ?

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Post ID: @WFQk7KD-1Rqch

walsh still there

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Post ID: @WFQk7KD-1Mwdn

Is Walsh out of Charlottesville?

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Post ID: @WFQk7KD-10ptm

more like nuclear waste we are only safe when it is encapsulated and buried

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Post ID: @WFQk7KD-Hwsm

“Highly odiferous” trash...

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Post ID: @WFQk7KD-Esvv

Walsh is trash

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Post ID: @WFQk7KD-uqjf

Or Kate H for that matter

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Post ID: @WFQk7KD-nnga

Weird how blame can be assigned creatively. How could San Ramon be expected to develop Predix, etc without front end customer contact. As an example asking JW in VA for this type of insight....clear that things went off the rails

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Post ID: @WFQk7KD-npne

Yes it is true there is revenue and this is in the reports published. Probably it is lack of a true digital P/L (ie many of the products in Intelligent Platforms or Grid JV while costs of San Ramon in another department - trying to combine with corporate, etc). In new configuration, there will likely be a clearer view of P/L for "digital" and despite the revenues associated with the established products cites it will be ugly.

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Post ID: @WFQk7KD-ldll

Regarding Walsh, the comment on "mid career hack" is exaggerated. That implies some early career competency. Has no understanding of product, technology, customers or applications he is involved in. Amazing....

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Post ID: @WFQk7KD-koun

In less recent GE history, midcareer hacks (like JW) simply werent hired - there was legit mgmt talent developed internally.

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Post ID: @WFQk7KD-hzvb

ok on walsh; interested to see what emerson does w him

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Post ID: @WFQk7KD-acjw

Wasn’t Walsh shipped along with the automation business to Emerson?

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Post ID: @WFQk7KD-9iqo

what ever happened to walsh in charlottesville, speaking of sw leadership

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Post ID: @WFQk7KD-9wsd

@2azr - Still core to the portfolio, still paying the bills. More appreciated and invested in over the last year or so.

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Post ID: @WFQk7KD-2knx

@2jlh i've been watching this space for a while hoping to get a hint about what's happening with those products. i worked cimplicity, plant apps, tracker for 15 yrs or so, but left a couple yrs ago. even then, the bread and butter was ignored and the shiny new toys from san ramon were all anyone talked about. are those products still ged or are some of them part of the automation group being sold to emerson electric? hoping everyone lands on their feet when the dust settles.

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Post ID: @WFQk7KD-2azr

"GE store and prefix interlocked for internal revenue generation and reducing repetition reducing BU costs of development cresting external sales opportunities."

lol you sound just like the c-ap product managers I am forced to work with whose main competency is this buzzword business speak. GED is a mess and a huge failure.

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Post ID: @WFQk7KD-2cpd

@1bpc Ummm.. zaz is right. The majority of GE Digital's software revenue comes from products that already had good market penetration. Want me to name a few? Cimplicity, Historian, IGS, Plant Apps. Stuff that came from Intelligent Platforms. Doesn't sound like you paid attention to the revenue reports that GE Digital published for everyone to see. And yeah, they are actually quite good in the markets they target, SCADA/HMI/OEE/Operational. Sounds like you are 100% IT though and wouldn't know. Double check your facts before you pop off.

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Post ID: @WFQk7KD-2jlh

It’s amazing that it has remained on life support this long. What is going on w the customers who paid big $ for predix like Schindler?

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Post ID: @WFQk7KD-1jbz

@zaz you have to be one that drinks kool aid. Its not early in the platform game at all. As a matter of fact it’s the middle innings. GE has been at this for over 5 years and still can’t get it right. On top of this, Service Max was a big chunk of that alleged 1.2 billion. Now that has dried up. Lest we forget that GED let go of its entire sales force in 2017...so who the hell is the to rep the product?

Bottom line is that this move was the last possible position they could take. Pretty soon the plug will be pulled completely.

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Post ID: @WFQk7KD-1bpc

GE store and prefix interlocked for internal revenue generation and reducing repetition reducing BU costs of development cresting external sales opportunities.

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Post ID: @WFQk7KD-1nmo

Totally incorrect.

The majority of the revenues are based on the historic Intelligent Platforms, Meridium, and now Grid Solutions portfolios. These are all legit software businesses with external customers.

Intelligent Platforms and Meridium are now ported to Predix, Grid Solutions is not.

Agree that Predix revenues are minor, but it’s still early innings in the platform market...

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Post ID: @WFQk7KD-zaz

There were a lot of problems w GED and predix. Primarily, Jeff gave GED a blank check and kept giving them $ without any results. A startup would have died very early on rather than getting reinfused w money and headcount ( up to like 2000 people in San Ramon!?)... I was there and I had no idea what everyone in the building was working on. Patrick Franklin was the first exec to acknowledge the issues but it was way too late by then. I worked on a few external customer projects and every single one resulted in customers being extremely p-ss-d. Bill Ruh did absolutely nothing but blow smoke for years.

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Post ID: @WFQk7KD-xlf

Sometimes R&D takes years of CAPEX to yield fruit. Sometimes the returns come quickly. GE tried to build a tech vertical. Startups manage it all the time with far less investment. GE's culture of entitlement and ossification needs to be broken down in a big way.

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Post ID: @WFQk7KD-nbt

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