How real is the rumor that storage is being spun off from Z for storage sale off?
14 replies (most recent on top)
Too many restrictions Where have I heard that excuse before? Oh that’s right
- When IBM sold the thinkpad to China
- When IBM sold the PC company to China
- When IBM sold Intel servers to China
Net net If IBM wants the deal, there are no restrictions that IBM can’t wiggle around
IBM wants to be DuPont and farm their IP. NOTE having a monopoly in the mainframe and its related SW marketplace negates having to license that part of the IP portfolio. Power and Storage are quickly moving into “farm the IP” (mostly design and SW) column as IBM chooses to exit the manufacturing, marketing, servicing, and support marketplace.
Almost any restriction that would stop a sale can be partnered around.
Like everyone mentioned before, too many restrictions. Selling would be near impossible.
IBM no longer makes anything anymore. For example Power is built by Foxconn in Mexico as is storage. Little to nothing is made anymore. I assume z in POK is as I got a tour recently but it was depressing and like a morgue or funeral home at a wake. Maybe saw 5 people and 1 system being built? Broken fences and grass in the big parking lots in POK. Depressing. And I bet most of the other stuff "IBM makes" is just re heated ODM original design manufacturers sheet metal that IBM brings in and slaps a logo on it and considers that IBM innovation. Ah NO!
IBM no longer makes anything anymore.
This is a common misconception since IBM left the consumer and x86 server arena.
IBM no longer makes x86 Thinkpads, desktops or servers, but it still makes Z mainframes, Power servers, storage and tape, and maybe more. And they still sell a lot of software that runs or runs on those boxes.
IBM will cut a GF type deal
Yeah and it will go about as well as that one did.
The company who acquires Power and/or storage will have to most likely have a USA channel. (dell or HPE jump to mind) Also note whoever gets these two Crown Jewels will also have to purchase the TSS infrastructure too. Would Kyndryl expand its lineup to encompass scaleout HW. They may as IBM is trying quite hard to squeeze the monopoly of mainframe
Maybe kyndryl buys Power and Storage. IBM no longer makes anything anymore. I was with System x when they sold us to Lenovo. Very doubtful under Trump CFIUS would approve a 3rd helping by (buy) Lenovo first PC Company in 2005 then Sys x in 2014. Lenovo pretends not to be a Chinese company but they are. Trust me.
CFIUS, short for the Committee on Foreign Investment in the United States, is an interagency committee within the U.S. government that reviews foreign investment transactions to assess their potential impact on national security. It's chaired by the U.S. Department of the Treasury and includes representatives from various government agencies, including the Departments of State, Defense, and Homeland Security.
I don't think it's actually possible. There's a national security implication involved here. Even if it did/could sell, it wouldn't go far.
Must be a day that ends in 'y'.
Storage has been threatened to be sold off since before I joined (over a decade ago). It's expensive (hardware always is), but it also makes money and we're not bad at it. It's always a bit frustrating about how the income for storage gets split between software and hardware, so it makes us look like we're earning less than we actually are (because we're a 'cloud' company).
Given that likely buyers were previously Inspur and Lenovo, there may be a political backlash...
That said, I'm not saying it's not going to happen. It's entirely within the history of IBM's executives to sell off the family jewels - but also I'd need a /lot/ of rumors to actually believe it.
This rumor has been around for quite a long time. IBM makes money on both product lines (power and storage), BUT require quite a large investment in research (IP) to remain competitive. As such it has been speculated that IBM is searching for a partner who will help split the IP costs for a share of the Power and storage marketplace. Will it occur? IBM certainly seems to be setting the stage for it as they have relocated storage manufacturing to the same Mexico power manufacturing plant. I suspect IBM will cut a GF type deal where it guarantees IP investment and “enterprise” purchases while exiting the manufacturing space for an IP payment. It’s a win / win as IBM farms the IP while exiting the manufacturing and marketing space. The partner wins in that they get an established market for essentially an IP payment. Will it occur? Given IBM’s stated strategy to focus on “enterprise” and exit everything else, our magic 8 ball says “looks promising”
@a7+1jt1sdpfa
Most of POWER stack is already located in India. Few years back HCL, the Indian IT machine was rumored to be buying all POWER related products. The current migration of the workforce to India makes it easier. HCL does not appreciate to be burdened with US based engineers.
after storage.... Power
I hear it’s being tuck under Red Hat storage offering as Red Hat can better absorb the quarterly loss.
It is being sold to pay for the bonus of the Indian clown at the top.