Thread regarding IBM layoffs

200 billion and Microsoft would get a good deal 'o)

HCL CEO CVK's view of IBM Products they're buying ...

Watch the Video:

https://hlsrv.vidible.tv/prod/5c0e08a047e8a202cd0bbad9/2018-12-10/hls/playlist_v2.m3u8?PR=E&S=hTovpmkFoxnQfHCHPYJfd1kPEsVEGD4l3z72nnXGpe35wj2i1yCouvqKnA8Y6ZhC

I am most shocked that someone actually paid money for Lotus Notes.

Innovation centers need to go along with most of services. Nothing but money pits.

The Systems division has been slowly getting an influx of GTS folks, just what is needed to keep the Cloud operations going. So, no doubt that IBM Service (GBS + GTS) is getting jettisoned very soon. Not to mention that with the acquisition of Red Hat which IBM overpaid for, IBM needs to raise cash. The 1.8 Billion for the software sold to HCL is just a start but evidently not enough. Revenues are not IBM's priority, it has not been in the past 5 years. I am willing to bet that by the end of 2020, revenues will be no more than 40 Billion, and the stock by the end of 2019 will be less than $100.

Anybody else wants to make a prediction on revenues and the stock?

I suspect the sell off of HW will encompass HW and OS’s. IBM will mine everything else SW wise since that feeds the “cloud” services model. Everything that can move to “as a service” will do so, and IBM will keep it. If you look at Power vs Z, you can see the difference. Power has zero “as a service” offerings NO HW offer, NO AIX offer, NO OS/400 offer, and NO LINUX offer. You would think after 5 years of pitching MSP offers, that IBM would have figured it out. NOPE they have not, and the market place has passed them by. The same thing has happened in DASD. Zero offers equals zero market share and zero customers. EMC and other more nimble HW makers filled this void and offered piles of pay for what you use offers. IBM Power and IBM DASD are standing there with their hats in their hands and are wondering where their customers went. It didn’t help that IBM laid off 90% of their Power and DASD sellers. Their customer base noticed and moved on. If they were stuck on Power, they now buy used. Z on the other hand via ALC and MLC as well as ELA’s has figured out the “as a service market” and controls it quite well. Z has made the migration to cloud. Power and DASD are dying a quick death

OP, If they do sell HW, what do anticipate will happen with lucrative mainframe software licensing and annual support? I believe it is the mainframe outsourcing together with software which have been providing cloud revenue increases for the past few years.

YES Notes is still used. Believe it or not. The “fix” is in. Wall Street is demanding results and Ginni is in the cross hairs. Ginni has been directed to “right size” IBM before she leaves. Trust me she is gone. HW and Legacy services are toast. Why do I say that??? There have been 4 articles including one in the WSJ saying IBM should be broken up and management replaced. The articles speculate as follows.

1. HW Sales should be sold off. My guess is IBM will oblige BUT throw in a 10 year deal to whoever buys the HW division so that IBM LABS develops and designs new HW for the acquiring company. Why would they do this??? Because it’s a way to milk the IP for 10 years. Expected revenue should be 4-6 billion

2. GBS will be sold or spun off. Considering GBS and GTS have been combined, this is a harder equation to solve vs just going back to GBS or GTS. My prediction is IBM will keep the “strategic “ portions of services, and spin/sell the rest. IBM has been doing this under the covers via moving anything that can be moved to IBM India. (Yes low cost country NOT a talent statement). With that said, approx 130k worth of heads moat being in IBM India will move to whoever buys them. Expected revenue. 18-24 billion

People still use Notes and Domino in 2018? Better sell the Hollerith vote counting machine division next!

Make IBM in right size, some day some one would buy out IBM.

Good job! Ginni and the Board.