Thread regarding IBM layoffs

What's next for Storage

The following is pure speculation, I have no specific knowledge of mgmt intentions, but I think it's rational speculation.

We have a lot of threads about what will happen to Systems/Storage under AK. Let's face it, most of that division has little value to anybody outside IBM, other than as a "milk the maintenance" type business. There's really not much any other vendor would want.

IMO the most obvious disposal from Storage is Spectrum Scale. It can run on commodity datacenter hardware, it's available as software-only, it has a plausible path to containers/cloud, and frankly it doesn't have much competition in its areas of strength. The HPC/AI storage market is dominated by Scale and Lustre followed by a bunch of niche products with some cool technology not much market presence. It would be attractive to HPE, Lenovo, or Dell as a focused high-end complement to their more mainstream storage offerings and help them win profitable deals in HPC where they get to sell not only the storage but also masses of compute and networking hardware. Plus, Scale is kind of the "ugly duckling" of Storage, whose management understand much better hardware and block than software and file.

Add to that the fact that Lustre is now being a subsidiary of DDN, and nobody wants to even crack open the door to their accounts to DDN, and Scale becomes an attractive - although relatively small in the scheme of things - technology acquisition.

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| 2488 views | | 9 replies (last April 8, 2021) | Reply
Post ID: @OP+1a0LJ0PB

9 replies (most recent on top)

@OP+1a0LJ0PB nailed it! HPE announced the integration of IBM Spectrum Scale:

https://www.hpcwire.com/2021/04/06/hpe-launches-storage-line-loaded-with-ibms-spectrum-scale-fs/

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Post ID: @gksv+1a0LJ0PB

IBM was in 6th place and had 4.6% market share year end 2020. Declining yoy.

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Post ID: @9hvx+1a0LJ0PB

Power and Storage are business walking dead, they are dead weight and will be quietly put to bed, they can sell them , there is no or little investment, just look at the facts, IBM storage market 4% at best, and most of that is MF attached, so they don't even play in the open systems. As for Power , Intel win that battle a long time ago and they are just servicing existing clients and they are moving there work load to intel/AMD, Power can not win or play against the big players in the Intel market place. written is on the wall , its just IBM believes thereon sh–, its called internal BS, just lookout the market ....

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Post ID: @9gli+1a0LJ0PB

It’s all over but the crying. Not because the products are bad, but because a profitable business model doesn’t close. IBM will make the best of a bad situation Mine the legacy IP, and invest in Hybrid Enterprise cloud storage SW. There is money to be made optimizing storage SW especially in the “enterprise” Thats their only way forward. The least resistant path is striking a partnership with someone who desires share.

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Post ID: @1tut+1a0LJ0PB
with IBM it is only about high margin businesses

Yup those are our margin orders. Margin, margin, margin.

Because IBM turns high-margin businesses into low-margin businesses and turns low-margin businesses into losses.

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Post ID: @1vtr+1a0LJ0PB
  • and what is wrong with something that is a commodity? There are plenty of companies in that so-called 'commodity' business that make tons of money... why can't IBM do that??

ah yeah... with IBM it is only about high margin businesses...

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Post ID: @1ndl+1a0LJ0PB

Storage is commodity BUT it’s market is addressable. Therefore the revenue is predictable. You can’t say the same for other startup or growth divisions within IBM.

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Post ID: @1ayo+1a0LJ0PB

What feature, function, or innovation causes enterprises to beat a path to IBM’s door? If you can’t answer that, storage is nothing more than a commodity market. I honestly can’t think of one compelling advantage IBM offers vs the competitors. NOTE I said compelling. When IBM plays in commodity marketplaces they get their butts kicked. Why They have a 30% built in overhead vs the assemblers of components. AK realizes this, and is trying to steer IBM towards a SW and Enterprise Hybrid future. Assembler of components make money via driving costs out of their supply and labor chain. This works when you purchase vast amounts of components or own at least 50% of the market share. IBM is no where near that kind of share, and is driving in the opposite direction. The better and safer play for them is to spin-off their share to a component assembler, mine their SW IP via embedding it into the assemblers products, and guarantee an enterprise hybrid cloud purchase from the assembler in return for Lab innovation. It’s the GF deal all over again.

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Post ID: @rgw+1a0LJ0PB

As far as I have heard, nothing will happen to storage. They are working hard at fixing their issues... I don't think they would work hard if they were planning to sell storage.

My opinion is that Systems is just fine. They is also a clear battle between Rosamilia and Rob Thomas. These guys appear to hate each other. Rosamilia is a lot smarter than Rob Tabasco, I would not be surprised if Rosamilia replaces Rob by sometimes in 2022.

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Post ID: @ecm+1a0LJ0PB

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