Many here have been waiting anxiously for some divestiture news from IBM. IBM has finally obliged. No... it is not GBS or GTS or Hardware but still...
https://newsroom.ibm.com/2019-04-04-Centerbridge-Partners-to-Acquire-IBMs-Marketing-Platform-and-Commerce-Software-Offerings-to-Form-Standalone-Marketing-and-Advertising-Technology-Company
Too many key ibm clients use these low margin products that’s why they’re keeping them alive with a skeleton crew in a new company they’ve conjured up. Center point leaders LoL. To al be philanthropists.
This announcement is funny. IBM are getting creative. Finally. Appears nice. Makes for better press coverage. And the stock hit is reduced.
This is definitely a cost-cutting play out of desperatio. This private equity outfit doesnt even have a name for this new “venture” but they super excited about it ?! Makes no sense.
@-1wcw: More details here, especially on the S/W products involved --
https://martechtoday.com/ibm-to-sell-watson-marketing-commerce-solutions-to-centerbridge-partners-232482
I doubt IBM will part with GBS. That’s where their announced go forward strategy resides. (see IBM annual report) Rather I believe they will trim/sell the old GTS parts. Most of these are now encapsulated into TS&C. (again see the Annual report pages 40-48). Yes they put it in writing. The CFO said the same thing in the post earnings call with Analysts. (listen to Kavanaugh call on stock holders relation page) I would be looking for IBM to exit outsourcing (your mess for less). The high IBM burden rate along with innovation not being able to help enough, is just too much drag vs the Indian outsourcers. IBM also showed their hand via not renewing IGF Oem contracts effective 6/30 (see annual report). This means TSS OEM is also in the mix
GBS is probably next due to all the overhead waste.
The divestiture announcement for the marketing c-ap and all those people is a big thinly veiled lay-off to reduce costs ...it’s not a sale. The “newco” will not be taking on all those employees from the business...especially all the sales organization. Why? Because day 1 of the newco they won’t even have a company name or any business cards. This thing is a cost cutting scheme dressed up as a divestiture. 400 or so people off the books and low margin business jettisoned. IBM keeps the sales contracts and the revenue without all the costs. Look for more like this to follow as IBM slims down their entire software offerings & portfolio. All that’s left of WCE is the supply chain SW (old sterling) ...and that team is struggling daily. Sales continue to underperform be of market saturation. Time to move on people.
They’re making the list of who goes to “the newco” now. This thing is a cost cutting scheme dressed up as a divestiture. If you’re not on the list you’re out of IBM in 90 days. Find a new job or sianara. No “packages” will be given.
Anyone hearing no cash pay outs ? It was one month pay but IBM needs cash for Red Hat .
It sure looks more like a cost reduction play vs a pure sell off. “we’ll give you our SW if you recommend our HW”
https://www.crn.com/news/cloud/ibm-unloads-rest-of-no-longer-core-marketing-software-business
I don’t think there’s an actual sale here. Like someone else said - the sale was to HCL back in December(?) and this is a new company. I haven’t seen any numbers for a sale in this second announcement. I don’t think it will help with red hat costs much - if at all.
All the stuff that HCL didn't want. Evidently no one else did either so they had to spin off to new company.
the staff is bipolar: some who have drunk the kool aid and are waiting for the next cup, and others who are waiting for the axe. Some who got shunted into dead end products and jobs who really can't leave and are in a race to retirement, and others who are biding time until the right shoe falls. Even 'protected' brands like cloud and security are shrinking and dying...there's no investment in products, just trying to stuff old c-ap in new wrappers and find a s---er to buy the spin.
How many folks work in Commerce? Sales, development, services. Really looking for revenue per person
Silverpop (WCA) -- Email
Tealeaf (CXA) (Saas & On Prem)
Watson Content Hub (CMS like Adobe Exp Mgr)
And all the add-ons to those main products.
What actual software products fall under "Marketing Platform and Commerce Software Offerings" and are being divested here?
Feels like GBS , GTS and hardware are next though... Next Thursday or next month is the quetsion