by Anura Guruge
>> Spin Off Watson — Oct. 8, 2014.
>> “Think” sign — Aug. 28, 2014.
>> Hursley’s John Fairclough … — Aug. 27, 2014.
>> Mainframe 50th — Apr. 7, 2014.
>> Gene Amdahl & I – Mar. 29, 2014.
>> IBM Hursley pictures – Mar. 16, 2014.
>> Malaysia flight 370: And ‘Poor’ IBM — Mar. 11, 2014.
++++ Search on “Hursley”, “IBM” & “mainframes” for other IBM (Hursley) related posts >>>>
From “MarketWatch”, a few minutes ago. The red line is the SPX. Goto marketwatch.com for latest.
Today’s disappointing results from IBM, with NO increase in revenues for 10 whole quarters, was no surprise for me. IBM, right now, is in another one of its inevitable down legs. This decline will persist for another 2 to 4 years. Then we will again get a leaner, meaner IBM with much, much less overhead. For us handson veterans of IBM, and that I am, this is just 1995 redux.
The ground is shifting under IBM and yet again IBM was caught napping.
I am not going to go through the entire litany of where and how IBM has failed, miserably, over the last 30 years BUT for those of you who are new to IBM let me just point out that: IBM missed social networking (read Facebook), IBM missed mobile (read Apple), IBM missed search (read Google), IBM missed collaboration (read LinkedIn or salesforce.com), IBM missed networking (read Cisco), IBM missed PCs (read Dell, HP, Microsoft, Lenvo), IBM missed non-proprietary servers (read Oracle, HP).
Now IBM is PAYING GlobalFoundries $1.5 Billion to take away its chip business. The SEC and the ‘Feds’ need to investigate this AT ONCE. I contend that there is some hanky-panky. Conflict of interest, backhanders and that kind of naughty stuff. There has to be people at IBM making a bundle out of this deal that does NOT make any sense. Check it out. Ditto Lenvo.
Yes, IBM is screwed. Its software revenue is going down because people are no longer investing as much in IBM mainframes and that was the Cash Cow for both hardware and software revenues.
As I have said in prior posts IBM will do ‘OK’ in cloud, analytics, security etc. BUT they will never be THE dominant player in any of these areas. The culture just does not lend itself to that kind of stuff.
We yet again need MASSIVE, merciless layoffs. 40% has to go.
As I have already said, for the sake of the poor, long suffering shareholders, they have to, TODAY, spinoff the Watson Group so that at least that technology can blossom without getting hampered by IBM’s culture, overheads and naivete. I am also not sure of the ‘new’ CEO. She scares me. Nobody can ever deny that I have not been very fond of all the great ladies that have worked for IBM over the years, BUT I also kind of know, deep down, that IBM still is a very masculine, boy’s club — just like it has been for all of its 100+ years. You have to be an IBMer to understand what I mean. Anywho … I haven’t owned IBM in decades. Just sharing my concerns because I still do care, deeply, about IBM. I would NOT be able to sit here, with my cup of coffee, in sweats, writing this IF not for IBM. IBM made it possible for me to have the lifestyle I now enjoy. As such I will always be grateful to IBM. I wish them nothing but the very best THOUGH I know that mid-term all we will see is more pain and suffering.