He only mentioned Z. As for Power or Storage, not a single word.
While it is unclear what that does mean, it is surely humiliating for the Systems people.
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@1uab: " The same can be said for Storage SW, which already reports to I believe cognitive."
It does not. It is still part of Storage, which is uncomfortable because it is high margin but much lower revenue than the hardware - and the execs are all measured on revenue.
However, as far as external reporting goes, at least some of the storage SW is reported as Cloud.
If HW reps got nuked, storage reps must have walked away unscathed- storage management & tech support too. Unless they picked off only one or two under the radar, I didn't see any impact on storage. Why do we still have separate disk and tape reps - easy consolidation no? Eliminates a whole management tier in one swoop. Storage is prime for consolidation/elimination. Give me my severance already!
I would expect the system SW to stay with IBM, as that is their IP that has 20 years of effort into it. The same can be said for Storage SW, which already reports to I believe cognitive. The latest round of RA’s pretty much nuked all of the HW reps within IBM except for the skeleton crew channel coverage. That would appear to be lining up a company who already has field reps to take over. IBM doesn’t want to lose the products, but they can’t afford to keep the investment. They are making the best of a poor situation via partnering out with a HW manufacturer. It’s essentially a GF/Intel server deal. Share the investment costs, forfeit the headcount costs, and mine the IP sunk costs.
Anyone heard an announcement date or what the exit will look like? What about systems software?
The end is near for systems.....
@OP+19NuAEgq
Yep, I agree; nothing was said about Systems. We are about to exit the hardware business.
I really wish storage software could unshackle itself from Systems. Move us under Cloud & Cognitive. Or sell us to HP. Or something.
IBM Storage is long finished several years ago, there are no talent left , they only attached storage to MF only, nothing more or less
Perhaps it’s time to get proactive and leave before IBM makes that decision for you...
I know its hard but try not to stress if you are enjoying the work. There is some really cool technical work in processor development. Separate company from the work but make sure the skills you are building are transferable.
There is a brain drain out of power as people move to other companies and people RA/retired are not replaced.
Look at it as contract work vs career. If you enjoy the work part (working with peers on processor design, sim, verification, ....) then that is fine, just don't see it as a place to stay long term.
Only focus on what you can control. Who knows what Arvin has planned, we can play the guessing game. Just figure what is best for you.
The new IBM - No Cloud relevance, No AI relevance.....No care anymore!
They are not walking away, they are partnering away. If they can get someone to pay them to take over Power and Storage, it’s just gravy The IP payments and the reduction in expense are worth the effort
It sure wouldn't be the first time IBM has walked away from storage and servers
It sure wouldn't be the first time IBM has walked away from storage and servers
Systems was abandoned 3 years ago when the 3 year TTR was offered (transition to retirment)
This does not surprise me. IBM just can’t afford to keep storage and Power. Both require major investment, not just in research, but in sales, marketing, manufacturing, and channel. Both are losing money and provide very little in competitive advantage to IBM vs Z. So if you were AK here is the cost benefit.
- Dump marketing, sales, manufacturing, and channel completely, yet have a supplier to purchase from for your Hybrid cloud investment.
- Split research with whoever buys that part of the division via offering up IBM labs
- Mine IP of the previous 20 years of investment plus expand sales via a third party channel
- Reduce costs via a head count reduction and manufacturing divestment
If you were AK, the 4 check points above stops a lot of Systems bleed