No surprise: we all knew it was all hype & B.S.
https://www.forbes.com/sites/jonmarkman/2020/02/28/ibms-recovery-becoming-cloudier/
12 replies (most recent on top)
That’s the reason why now the Weather Company web site and iphone/android apps are slow as hell.
F—ing IBM!
@2ibi tied to each GTS SO contract renewal is a commitment to IBM Cloud. This has been the only way that they have gotten anyone to use it, and they force the client via a minimum consumption agreement.
Also there is 1 big AWS customer who moved away from AWS to IBM Cloud. Guess who it is? The Weather Company :-)
Even as monopoly Z is a risky play. Z experts are aging out and no one is replacing them. Colleges don't teach mainframe so new hires have to spend 5-7 years at IBM learning from the beginning, versus doing what they know and being upwardly mobile immediately.
"IBM Cloud is not a colossal failure. It grew at an amazing 6% or 9% last year, depending on whether you adjust for constant currency. No other top cloud vendor grew at anything close to that rate!"
2rmz. Understand that most of this 6-9% came from existing IBM accounts who paid IBM for "migration" followed by IBM cloud "hosting" for some negotiated year/month commitment. Money shifted from on-premise IBM revenue to IBM Cloud revenue. I haven't heard of any/many "Customers" leaving Amazon, Microsoft, Oracle, etc. for IBM. For those of you still at IBM this is the biggest challenge moving forward. You can only milk the existing install base for so long. Eventually that install base will move away from IBM and their dependency on legacy IBM technology. To shore this up, IBM needs to attract new business.
2ohm. That’s it exactly. IBM cloud is really just Hosting Z by any other name. Krishna knows this. There is a reason he recommended buying Redhat. It’s how you make all the Z middleware work. System Z is IBM’s last remaining monopoly. System Z is quite sticky and IBM has gone all in on it. IBM strategy moving forward is the IBM strategy of 1960’s. All Z all the time. Everything else is an afterthought
That (cloud) ship has sailed.
What is IBM Cloud anyway? I know from my GTS friends, that there is so much smoke and mirrors going on there, calling everything "Cloud" when it's anything but.
Sure, I know that there are remnants of the old Softlayer around somewhere and a few other things, but the bulk of the "Cloud" stuff I have seen here is just a big farce. It's legacy hosting with a new name. Lipstick on a pig perhaps is a better description.
Krishna was the genius behind that, too.
IBM Cloud is not a colossal failure. It grew at an amazing 6% or 9% last year, depending on whether you adjust for constant currency. No other top cloud vendor grew at anything close to that rate!
(Amazon/Microsoft/Google all grew at least 5x more)
I would like to know why is Arvind promoted to CEO. He is our cloud guru, but the IBM cloud is a colossal failure. The Peter Principle is alive and well at IBM.
As an employee of ibm the big question that no one could answer was: what can ibm do with red hat together as one company that they could not do apart? No one can answer that. Orders are red hat operates independently. No special treatment for ibm. Red hat deals cannot go on ibm paper. Ibm folks cannot get any preferential treatment from red hat. Red hat is Switzerland and needs to remain neutral to not disrupt their partner network. So...what the acquisition was about is- Ginni needed to buy more revenue cause she could not grow it AND these execs get acquisition bonuses based on the value of the acquisition. Why? I have no clue. But for a 34b acquisition that bonus will be staggering. So, again...why did ibm buy red hat as opposed to building a strategic partnership.
But they were named "IBM named one of the World’s Most Ethical Companies" again this year. IBM is full of "lets make up or buy our way onto a list for good press"
What....IBM spent 35bn to acquire RH didn't they? Nevermind that VMW bought Pivotal who had the same offerings as RH for only 2.5bn. Much better deal. Oh, & the leaders of the RH's openshiFt (always remember the F! it's funny how inside, how often it's forgotten) which is their flagship product now, have left, and still are leaving to go to VMW. I guess a non-compete doesn't work unless you're willing to go after someone over it. Crazy that they still sell openstack even though there's been layoffs and also reallocation to openshift. The numbers supporting openstack inside now are a lot smaller than they were before.
Overall, IBM is touting that RH is going to save them. All the while, they're already started whittling like they have always done to companies before.