Just seen a rumour on twitter.... Also there was a little announcement on the 31st in EMEA delivery that EMEA was being split into GBS and GIS which would match IBMs organisation......
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Platform -x is a bunch of scripts and we had better alerts, better disks management 22 years ago on the mainframe then we have today on Windows and Unix , IBM doesn't need platform-x
@4hhw+1iwWVm7r would you say the source of your information is good? Any idea when salvino and gang plan on going public with this?
Apparently they ported Platform-X to mainframe and it is essentially a great break through, hence IBM"s interest in DXC.
I thought why would IBM go backwards and get involved in all that old infrastructure, hardware, mainframe stuff they just got spun off into Kyndryl? IBM wants to be 'laser focussed' on its higher-margin Hybrid-cloud and AI side, to build that into a $1Trillion company to catch up with Amazon and Microsoft (albeit a bit late in the day and a little optimistic). They should have bought Luxsoft off DXC, that would have made more sense. So IBM cuts off the 25% hardware side, call it Kyndryl .
HPE did similar when it flogged EDS to CSC to make...well, that was more of a mess really than any desire to maintain a stake in the result.
Kyndryl makes $18 billion with 90,000 employees (DXC makes $14B with 134,000). IBM still has a stake in Kyndryl despite the fledgling company not doing so well, having had no top-line, dividends and having lost 50% of its stock this year and its Q1 wasn't great. It was also involved in lawsuits last year, so as you can see, they and DXC do share some common synergies.
Kyndryl's expertise in infrastructure and IT modernisation coupled with DXC's expertise in workforce reduction and magic tricks would help the new DXC/KYNDRAL organization get a firm grip of its cost base in order to drive Kyndral's objective to becoming a world leader in technology services, assuming they could mutually agree a leadership that doesn't drive it into the ground.
Apparently IBM wants Platform-X to augment their Watson AI platform
I think IBM have a little more sense than to look at a now cancelled and failed program
@3bfb+1iwWVm7r Thank you for the reply its all a confusing strategy to be honest. But I guess that's typical with these companies. For DXC what segment are we talking about here. I'm guessing that the assets where talking about here fall under DXC's anaylitics and engineering buisness?
Apparently IBM wants Platform-X to augment their Watson AI platform and hence their interest in dxc. Thank God we got Atleast one outstanding product that we can all be proud of.
IBM wants the DXC mainframe assets because they generate far more money in services and SW and that’s what IBM has been spending the last 3 years developing with Redhat. It’s not about the HW (thats legacy IBM) but it’s about Hybrid Cloud and AI (Thats new IBM) There is a corollary that also goes with this. IBM has almost zero interest in the “cloud” as they abandoned the intel boat years ago, THUS someone else will pick that up
GBS Global Buisness Solutions GIS Global Infrastructure Solutions. They are DXC's two reportable segments each segment is 50% of total revenue.
@3syu+1iwWVm7r Thats a bit confusing. Why would IBM want DXC's mainframe assets when they just spun out kyndryl?
What does GBS and GIS stand for?
The rumor mill says this is an asset swap. IBM wants the mainframe components under DXC. DXC wants the Power and storage components under IBM.
Really Bagel, you must be joking????
Way over his depth in anything like this, Salvino is struggling, so bagel has no chance.
These guys just know how to take millions from companies, but haven't delivered any growth.
Bagel is driving one of the merged entity is the story.
So it 'goal' vs Sharp seems like. Both are credible, let's see how it goes.
At least Kyndrl gave their staff 5% raises as promised in July, even though they made a loss they did not renegade, they stuck by their word.
As for DXC Salvino made a promise numberous times on town halls for August raises and still hasn't paid.
You can see from Kyndryl that making a loss doesn't mean you don't treat your staff fairly.
Let's hope it's Kyndryl taking over. If Salivino takes over can anyone trust his promises or his words?
DXC employees welcome to IBM! You will love it, IBM is great...
It's simple all 3 outsourcers kyndrl, DXC, and Atos are well underpriced on the market. Remember DXC was $96 per share under lawrie now $25, Kyndryl was $30 now $10, Atos was €50 and now €10.
Long term all of them don't have much of a strategy, so there's got to be some consolidation.
A company with a strong balance sheet could pick up all 3 for under $15billion with turnover of $40 billion
Once the deal is done that's going to control the prices and there will be no more silly underbidding.
Just needs a CEO, and CFO with some ideas to do the deal.
Might even be a 4th party that has the money picks these up on the cheap.
Atos has slightly more hurdles as the French government has a say, dxc and kyndryl are easy targets.
Disclaimer Im not an employee
but I came to the same conclusion independently. What you're missing is it wouldn't be a merger with IBM it would be with Kyndryl. Something has been bothering me, why did David Einhorn invest in Kyndryl? DXC makes more sense from strictly an investment standpoint, its profitable and generates ok Free Cash Flow. (Side note I'm aware of the catastrophe going on internally i'm just pointing out the surface level appearance to the untrained eye) On the other side Kyndryl has ok employee moral and a better industry reputation. Furthermore recent rumors on this board suggest that DXC is looking for a new CEO but Mike 2.0 was just made chairman of the board so why would the board want a new CEO? It would make sense if you where going to do a huge merger and need someone with deep integration expertise. Finally on Thursday DXC randomly canceled a meeting with an investment anaylist offering no explanation. This could be a coincidence or maybe something came up that they cannot disclose yet? My conspiracy theory is the Einhorn intends to use activism to merge the two companies. They get a new CEO, Salvino stays as chairman while Ken Sharp who I actually regard as a fairly competent old CSC guy becomes CFO. It will probably be a debacle but the puzzle peices kind of fit together. Let's not forget why HP bought EDS to begin with. Their plan was to take on IBM in the infrastructure market. Now there's an opportunity to merge both into one seems like an interesting strategy from the standpoint of an activist investor.
Why would anyone want to take on this tu-d? Unless the plan is to make a tu-d sandwich
They don't care about our staff, they want to take over all our contracts with customers and get hardware for dirt cheap!
Good move for them
Any company that performs even the most basic of due diligence checks will walk away from buying any part of DXC.
Low margin deals, insufficient staff, and still unable to make a decent profit. You couldn’t give it away!
Informed sources say - this is a done deal - recent workday freeze was to make the GIS GBS split correctly. Musical chairs and lobbying for senior positions happening and this weekend would be a busy weekend for the big bosses.
Why would anyone think of buying DXC. It is all smokes and mirrors. Once a proper due diligence is done the buyer should step away. But historically we know how good our Senior Executive is in selling the DXC rebound story to Broker analysts. I noted some interesting questions last quarterly presentation from analysts, I think they are no longer convinced.
Another 10 years of transformation misery. And the blend of L-HP with L-CSC was already designed to fail. Idem for all acquisitions by L-HP...all turned out to be complete disasters. And now a merge with IBM...armageddon.
Where on twitter did you saw the rumor?
IBM would go with the DXC application service line. Kendral would get the GIS part of DXC...
Why waste the time, let DXC go out of business and pick up everything dirt cheap
Kendral and DXC GIS services IBM and DXC GBS.....
Kyndryl Holdings, Inc. is an American multinational information technology infrastructure services provider that designs, builds, manages and develops large-scale information systems. The company was created from the spin-off of IBM's infrastructure services business.
Why would IBM get into it again with DXC ?