Tag Archives: mainframes

IBM’s Proposed Overpriced Acquisition Of ‘Red Hat’ Will NOT Stem The Bleeding.

by Anura Guruge


This from “MarketWatch”. Click to ENLARGE. Google for more coverage.


Click to access my recent post.


They ENDED up buying the ‘Weather COMPANY’ without the Channel. But, they made the acquisition nonetheless. Click to access my post.


Another desperate, drunken-lurch by ‘gin-and-tonic’ Ginni Rometty to distract the market & investors and DESPERATELY cling onto her job for another year.

This is but a shiny object to distract.

Open Source Linux will NOT stem the bleeding at IBM. Red Hat, of late, was also losing money.

Open Source does NOT command the margins that IBM needs — and got so used to, for over 70-years, with its PROPRIETARY systems, e.g., mainframes, 8100s, S/36s etc.

The market has changed, fundamentally.

Over the last 30-years IBM missed every single major market move. It let the likes of Google, Apple, Facebook, Twitter, NVidia steal the show.

Oh, and don’t forget IBM has its own version of UNIX, AIX — and has had it for 20+ years. It will take years to transition from AIX to a different flavor of Unix.

IBM’s days as an acquirer are gone.

IBM needs to be ACQUIRED by the likes of Amazon or Google.


Related Posts:
Search on ‘Amazon& ‘IBM’.


by Anura Guruge

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

Gene Amdahl, Of IBM Mainframe Fame — Video From 1984 Talking About PCs.

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by Anura Guruge


Related Posts:
>> Gene Amdhal passing.
>> Gene Amdhal tribute video.
>> Gene Amdhal & I.
Gene Amdhal + Anura Guruge 1995
>> IBM Hursley pictures.
>> “Think” sign.

>> Hursley’s John Fairclough …

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Search on “Hursley”, “IBM” & “mainframes” for other IBM (Hursley) related posts … and also ‘Dylan’ >>>>


Gene Amdhal
(16 November 1922 – 10 November 2015)

obituary post.


1984 video of Gene Amdahl.

Click to access 1984 video of Gene Amdahl.


I had hoped to find quite a few videos on YouTube that I would be able to share with you. This was the only one I managed to locate so far.

Good video. IF you have never met the great man this video will give you a very good feel as to his personality. As you will hear he was very soft spoken with a noticeable Scandinavian accent though he was born in South Dakota. He was also a very gentle man albeit with an iron resolve which you could sometimes clearly see in his eyes. Always very deliberate and thoughtful in what he says.

1984. Watch the video. He got the PC architecture part 100% right! Wow.

Now listen to Lore Harp at the 3:13 mark. Listen to what she has to say about PC CLONE vendors. Wow, talking about getting something WRONG. Great contrast here. Gene gets it right and she is dead wrong. Funny.

I, as you can see, as is my wont, is trying to pull together as much media of Gene in one place for future reference. IF you have any photos or videos of Gene that you would like to SHARE please let me know. I will work with you. Thank you.


Gene Amdahl, Father Of IBM Mainframes — A Tribute Video On YouTube.

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by Anura Guruge


Related Posts:
>> Gene Amdhal passing.
>> Gene Amdhal & I.
Gene Amdhal + Anura Guruge 1995
>> IBM Hursley pictures.
>> “Think” sign.

>> Hursley’s John Fairclough …

++++
Search on “Hursley”, “IBM” & “mainframes” for other IBM (Hursley) related posts … and also ‘Dylan’ >>>>


Gene Amdhal
(16 November 1922 – 10 November 2015)

obituary post.


YouTube Gene Amdhal tribute video

Click to access YouTube Gene Amdhal tribute video.


Gene Amdahl, Father Of IBM Mainframes, Passed Away November 10, 2015 (Aged 92). Very Sad. GREAT Loss.

Gene Amdhal + Anura Guruge 1995

Gene Amdhal & I, 1995.

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by Anura Guruge


Related Posts:
>> Gene Amdhal & I.

>> IBM Hursley pictures.
>> “Think” sign.

>> Hursley’s John Fairclough …

++++
Search on “Hursley”, “IBM” & “mainframes” for other IBM (Hursley) related posts … and also ‘Dylan’ >>>>


geneamdhalobit1

Click to ENLARGE and read here. Link to original below.

Click for original.


geneamdhalobit2

Click to ENLARGE and read here. Link to original below.

Click for original.


Gene Amdhal, the father of IBM mainframes (my passion and profession for 35 years), is one of my all time heroes — alongside the likes of Winston and Nelson!

He was a GREAT MAN and a wonderful human being.

I was privileged to have met him twice, once in 1975 and the other in 1995.

In 1975, as a 21 year old, in my first year at IBM, I was sent to a 2-day Gene Amdahl seminar, at a hotel at Heathrow Airport, London. I sat in the front row in open awe.

In 1995 he paid me the ultimate compliment by attending one of my networking seminars and allowing me to join him at breakfast and dinner, before and after my presentation. Doing a seminar with Gene Amdahl in the audience was such an honor. Over dinner he asked me: : ‘Bob Metcalfe, that thing he invented … how is it doing?’

Well, I did a long post about Gene Amdahl and I last year. Best to read that if you are interested.

Suffice to say that I am greatly saddened. I knew that this day would come. 92 wasn’t a bad innings. Of that I am glad. There was still more he could have given us BUT I am thankful for what he did give us. Great loss.

Thank YOU for everything Gene.

GeneAmdahlpost1

Click to access 2014 post.


>> >>   The Tribute Video   << << 

** **  A video from 1984 ** **


IBM Software Revenue Decline Will Continue — Cash Cow CICS Has Croaked.

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by Anura Guruge


ibmjuly212015

Today’s chart from “MarketWatch.com”.

Related Posts:
>> Donate Hursley House To The National Trust.
>> Get rid of unproductive R&D.
>> IBM’s 26% layoff is NOT enough.

>>
Punch-drunk IBM, 40% layoff.

>> “Think” sign — Aug. 28, 2014.
>> Hursley’s John Fairclough …
>> Mainframe 50th.
>> Gene Amdahl & I.
>> IBM Hursley pictures.
>> Malaysia flight 370: And ‘Poor’ IBM.

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Search on “Hursley”, “IBM” & “mainframes” for other IBM (Hursley) related posts >>>>


cics47ssadIBM’s software revenues will continue to spiral downwards because 47-year old CICS no longer rules the roost!

Yes, CICS, whose roots go back to 1966 has been IBM’s cash cow when it comes to software. CICS was IBM’s proprietary Transaction Manager — and most things to do with IT is basically a transaction.

Today, in the Internet/Linux/OpenSource world people no longer want PROPRIETARY Transaction Managers. So CICS sales are down and that more than anything else hurts IBM’s software sales numbers.

I, as somebody who made a good living as an independent IBM analyst for 30 years, have said it before and will say it again now. IBM’s tremendous successes from the 1960s till around 2008 was ALL due to the stranglehold it had managed to acquire with its PROPRIETARY hardware (i.e., mainframes, S/3x, PowerPC), networking (SNA (and I was “Mr. SNA”)) and software solutions. Now proprietary systems are anathema.

In yesterday’s results IBM said that its new mainframes are doing well. Its new mainframes are OPTIMIZED to run Linux! Yes, IBM is positioning its mainframes (and it has done so for a about a decade now) has the most scalable and reliable, clustered Linux servers EVER. And that is true. But selling mainframes as Linux servers does NOT help IBM’s software revenues.

In terms of software the 3 key products that contributed to the lion’s share of revenue and margins were: CICS, DB2 and z/OS (and its predecessors). All 3 of these are now legacy-legacy. Dying if not already dead. That is the problem. I wish I had the time to explain this more. I used to do that for a business.

IF you are a MAJOR IBM investor and want to know the real scoop contact me. I still know and understand IBM better than most of those you will see and hear on CNBC. SMILE. Yes, I am ex-IBM too. 


IBM: ‘Watson Health Cloud’ — Could End Up Being But High Level Flannel.

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by Anura Guruge


Related Posts:hursley_site_detail
>> IBM: Floppy disks & ATMs.
>>
Donate Hursley House To The National Trust.
>> Get rid of unproductive R&D — Feb. 2, 2015.
>> IBM’s 26% layoff is NOT enough — Jan. 27, 2015.
>> Punch-drunk IBM, 40% layoff — Oct. 21, 2014.
>> Continue to punish shareholder — Oct. 20, 2014.
>> Spin Off Watson — Oct. 8, 2014.

++++ Search on “Hursley”, “IBM” & “mainframes” for other IBM (Hursley) related posts >>>>


watsonhealthcloudasas


I am already on record in stating that IBM’s ‘Watson‘ technology is the new jewel in its now slightly tarnished crown. ‘Watson’ is the future. Mainframes, at long last, the past.

I am sure that Watson has the potential to do much to enhance medicine and healthcare in the decades to come.

But knowing IBM as well as I do, I am not convinced right now, that IBM has the wherewithal and the will to make this ‘Watson Health Cloud‘ into anything meaningful. Yes, it will, of course, do specific, carefully crafted “party tricks” — but those aren’t going to get anybody far. Basically what I am trying to say is that we are unlikely to see this Health Cloud deliver useful, germane results for many years to come. Watson does have the technology analyze huge quantities of data BUT we still don’t know the right questions to ask. And that is going to take some time to work out how to best exploit what Watson can deliver. In the meantime Watson Health Cloud could end up becoming what they refer to as ‘High Level Flannel’ — i.e., a nice fluffy feeling without much substance behind it. Think ‘fluff’ and appropriately we in this case are also talking Cloud.

So this is my fear. IBM is going, through financial and marketing necessity, try to make this Cloud impress. But it is not going to ready. It will do, as I said, before some ‘party tricks’. People might get disillusioned with it before it gets a chance to mature and be productive.

And heaven help IBM if there is a data breach as happened to Anthem. IBM will, of course, have better security than bumbling Anthem, but you cannot always protect against insiders who are bought off!

So, I am happy to see this initiative, I just hope IBM doesn’t rush it.