Earnings came in almost exactly where everyone expected. Mainframe gave us a bump, and will continue on for at least 2 more quarters.
Services were disappointing THUS the merger of GTS/GBS. (Eg we are going to move the 120 billion in backlog to the cloud and dump 15-25k worth of heads). Those dumping of heads will easily offset the increased taxes.
The real question is how do we part out the legacy services vs the cloud services. My guess is now that Ginni has gotten her win, she will very much accelerate the parting out claiming we have turned the corner and the “new” IBM is here. To do that the old IBM must be off loaded
not my post, took it from https://www.thelayoff.com/t/RinzF4J - it's a good summary about what's going on right now, I felt it deserved a thread of it's own...