Thread regarding IBM layoffs

Is this an admission by IBM that they got it wrong, and Redhat got it right? There is an old expression in the industry “if you are not first or second find another line of business”. I believe Jack Welch and Gerstner believed that. Sounds like IBM is adopting that

What are the cloud managed apps? Internal IBM bloatware tools?

Cloud Managed Apps layoffs start tomorrow, fact, for USA

IBM does not know what it is doing. It is one desperate move after the other. People waiting for Ginni to leave don’t understand what comes after Ginni... it is call Schroeter... another id--t who don’t understand what to do from a technology perspective. The financial engineering will keep on going... good luck everyone!

2rfz. I think you may be a little off on the “bluewashing” statement surrounding Redhat. IBM is going to spend nearly 1/3 of their current stock market value on Redhat. If this isn’t a desperation move, then I don’t know what is . Let’s think back to when IBM had their “other” near death experience. They brought in Gerstner, and he completely changed IBM. (no Bluewashing). I believe that is what is happening right now at IBM. The re-org / sell off is going to be big, as IBM is having their 2nd heart attack / near death experience. That means everything blue has to change and bend to the new sheriff in town (Redhat). IBM doesn’t change easily, but when they do, they go full bore I expect the changes on deck before June 30th. They are going to be big, and radical. It’s fish or cut bait time, and the board knows it. Ginni has been given her marching orders, and it doesn’t include the current exec management chain.

And remember IBM promised to not blue wash Softlayer, but they did. lol

Same thing will happen with the dreadful RedC-ap which now everyone will run away from knowing who is at the helm. IBM has made their bed so now they will have to lie in it.

1ghz. So it looks like Intel is out and Z and Power are in. Why did IBM spend 2 billion on Softlayer if OEM is out

@1vap: quoting relevant excerpt from the Seeking Alpha article --

Wamsi Mohan

When you when you look at just a switch gears a little bit into services, you've delivered some tremendous change in margin improvement in GBS, gross margins have expanded quite significantly. The scale base had been reoriented, there was a lot of hard work I know that went into that. And the fruits of that are sort of showing up now.

When you look at GTS though, in the last call I think there some comments around, hey, we're going to be more selective a little bit around GTS. And so how should we think about what you're doing in GTS? Maybe if we can contrast that with what happened in GBS. GBS was a multiyear journey, is GTS something like that, is GTS something quick? How should we think about what you're trying to accomplish within GTS? And there was margin improvement there, too?

Martin Schroeter

Yeah, there was there was margin improvement. I mean, I think what we talked about on our call with regard to GTS and focus is really, it's, it's completely consistent with what we've talked about is the IBM financial model, the overall financial model, which is focused on high value. So similarly, when we divested of our x86 server business, we said look, that's a commodity place. It's not going to drive the kind of margins we need, it doesn't it's not highly valued by our clients. So we're going to divest.

When we looked across the GTS portfolio, that is a high value business, right, the work we're doing is very high value. But we are going to say no to things like bringing other OEM content into it, because there's no value there. So the revenue line will get a little bit of pressure by choices we make, right? But the business itself is a business that delivers a ton of productivity to our clients. So it's very highly valued by them.

That business will, once we sort of get the lower margin content out that business is a is a business that resonates very, very well the offerings resonate very well with our clients, because those offerings now reflect not dissimilar to what we went through and GBS was offering now reflect the world of hybrid multi cloud. So there our backlog is now, which massive backlog, right? Our backlog now is almost a third cloud now. It doesn't, it doesn't turn over quickly, because as a long duration to it.

But that's a high value business, because now it's it is basically becoming a cloud business. Yes, we'll get some of the low margin stuff out. But it is a high value business. So the process we use when we talk about the IBM Business model is no, it's no different when we look at a segment reporting, and that really is about value.

What GBS has done similarly, is taking the offerings that we’re starting to come out of ties. And we've talked about this already years ago, we said look, some of these big enterprise kind of application implementations are commodity. So we're going to take those skills we're going to retrain them we're going to put them into helping our clients digitize their process helping our clients with the design they need in order to build more compelling apps for their own use. So we've done that in GPS

We've done that in GBS, we've modernized that those offerings, and they now reflect like, as I said, they reflect digital design, they reflect the digital journeys that our clients are on much, much higher value than where they were. GTS is in that similar process. Again, it's very cloud, it's very cloud focused now, highly valued by our clients, but we are going to get the OEM stuff out of the revenue, this just doesn't make sense to have it.

This is a very interesting article. Schroeter has some not so kind words for Pieces of GTS. If you work on OEM within GTS, you most likely are going to be sold/spun. It’s page 9 of the article

https://seekingalpha.com/article/4268311-international-business-machines-corporation-ibm-presents-bank-america-merrill-lynch-global

So if we try reading between the lines, it sure seems like everything that is BAU within IBM is about to get re-org’ed. IBM is betting the farm on purchasing RH and moving forward. We all get that. Here is the piece a lot of folks don’t get. RH changes everything. IBM is tossing everything for RH to take over, or give them a new marketing perspective. THUS cloud as we know it, is gone (RH will take it over). Services as we know it is gone (RH will take it over). Here is the most important one. SW as we know it is gone. (RH will take it over). So if you are in the BAU divisions, I believe a re-org is about to happen, and BAU practices will be discarded for RH practices. Will it happen tomorrow. NO IBM moves at glacial speed, BUT it has been approved, and you can see the ice moving. IBM is still hedging their bets just in case a snag hits the RH deal, but look for this to continue to pick up speed as time moves on.

Is that layoff in the US or is it in places like Asia and Australia as well?

They should start at the Exec level I think - there are lots of 'Old IBM managers that managed to hole up and hide in Cloud Services doing nada.

Red Hat is sh!t

7/1 notified / this is for @1inu

IBM didn't buy Red Hat to compete, of course parts of Cloud are going...

What state?

Oh wow... layoffs in a Cloud group?!? That tells you everything you need to know about the state of the IBM Cloud... stay AWAY at all cost!

7/1 is there last day or that is the day they are notified

40% is the number I am hearing