4. If IBM needed to spin out managed-services infrastructure, why does it need to keep Systems?
Systems or some portion thereof, is next to get spun-off or divested.
https://cloudwars.co/ibm/ibm-q3-earnings-5-key-issues-ceo-arvind-krishna-should-address/
ZIL Read the 5 points made in the original note IBM is following number 4 “Oracles play” IBM owns mainframe, and they are stacking the deck to make cloud play well with mainframe Redhat is just part of harvesting the legacy mainframe SW
All this talk of Power/Storage is next, GBS is next. Then you may as well spinoff RedHat too and IBM can go back to just selling mainframes and database and middleware software that runs on them. What they were doing in 1979. I hope that's not the plan.
Inspur already pays IBM an IP royalty for “open Power” Note Inspur has been the most successful vendor in that marketplace. Would Inspur be interested in The entire Power infrastructure (Channels, distributors, sales, marketing, and component manufacturers) I guess Monday will tell. If I was to speculate I would bet on Lenovo as they already have the infrastructure piece worked out from taking on Intel sales from IBM, in addition to dealing with the Chinese offshoring problems that are sure to arise Either way, Power within IBM is a dead man walking, followed very closely by Storage (commodity)
But then comes that key on the IBM piano that sounds increasingly discordant, tinny, and out of
place: “systems.”
Watch for IBM to sell POWER to Inspur.
An Open Letter to IBM CEO Arvind Krishna: Keep Swinging that Axe! –
https://cloudwars.co/ibm/an-open-letter-to-ibm-ceo-arvind-krishna-keep-swinging-that-axe/