Struggling IBM Should End-Game Mainframes & Milk Existing Revenue Stream For 10 Years!

by Anura Guruge



IBM stock price Year-to-Date (YTD) — from MarketWatch. Click to ENLARGE and puzzle over.


Click to access MarketWatch article from July 19, 2017.


Last week’s IBM results was the 21st consecutive quarter of declining revenue! That is plainer English is 5.25 years of declining revenues in a row! That is bloody stupid. And all of that since Gin-and-Tonic Ginni Rometty took over as Chairman. Forget political correctness, she has to go. But, that aside.

It is time to stop being sentimental and emotional about IBM mainframes — and this from one who loves IBM mainframes and made a living thanks to those big, blue iron. But, you have to be realistic. Mainframes, FINALLY, after 53-years are on their deathbed BUT will keep going, without any sustenance, for another 10-year, MINIMUM.

That is the beauty of the LEGACY business. The legacy will continue even once the ‘legacy-maker’ is dead.

Developing new mainframes and mainframe features is an extremely costly business. IBM should stop ALL mainframe development efforts forthwith.

IBM has a rich and very profitable revenue stream of mainframe leases, mainframe maintenance and mainframe software maintenance. That revenue will continue as long as IBM keeps the mainframe running — via just maintenance.

Remember when Microsoft Windows XP, Windows 7 etc. are end-gamed. But people, including I, keep on using those operating systems. Well, it is much better when it comes to mainframes.

IBM can end-game mainframes tomorrow and mainframes revenues will continue to pour in for at least 10 years. But, IBM can save many millions, maybe even a billion, on development costs.

So, mark my words.


Related Posts:
>>>>
Search on ‘IBM’ for many other posts >>>>


by Anura Guruge

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s