IBM needs cash to pay off the red hat purchase...who’s next to spin off and generate some cash? Rumour is next up is the multi tennant stuff.
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any flavor of on premise software is a candidate to be sold. You could see the writing on the wall with the Lotus, Portal, Commerce, etc. products where IBM hadn't put ten cents worth of investment in any of them over the recent years. All things Red Hat will become the face of IBM pretty soon because that would be the only positive thing IBM has to showcase (until they run Red Hat into the ground like they've done with everything else they touch)
If the higher salaries are in GBS then most likely its the one being right sized to sell.
Strategic imperatives is hogwash.
GBS will not be sold or spun off. It’s where IBM keeps it’s strategic initiatives, so realigned or downsized to make it’s profit number is more realistic. Will GBS absorb higher profit margins pieces of TS and cloud division? Most likely. The remaining pieces of TS and Cloud will then get sold or spun off. What strategic piece of business does TSS bring to the party? The same can be said for most outsourcing contracts. Your mess for less has moved to lower margin business entities and IBM is focused on Fortune 500 business entities
I will agree that Cognos is a strong contender for the next spin off... Yet another IBM's acquisition that has gone nowhere. Up until last year, in services we were getting are utilization reports via Cognos reports. We have just been told that it is ending and some other method(s) will be provided shortly. Just another sign that may be Cognos is being sold of...
Bain is putting lipstick on the GBS pig right now.
bwahhh
Next IBM Business to be sold
IBM Cognos Analytics is the prime target. They have half the number of employees versus a decade ago. Much of the team is the remnants of the spectacular failure called Watson Analytics. That product quietly disappeared from the IBM sales catalog in 2018 after never turning a profit. The number of paid Watson Analytics users was rumored to be less than 200.
The senior executives in charge have run this business segment into the ground. They've received numerous bonuses and delivered nothing. Somebody needs to take the fall. There are not enough rank-and-file workers to blame. They can barely keep the lights on.
The final insult: IBM Cognos just fell into the niche category of the Gartner Magic Quadrant for Analytics and BI. That usually means that customers are telling Gartner they only use Cognos because it's included free as part of a larger contract. That's how analysts referred to Lotus Notes before IBM sold them off. I give Cognos four months.
Every day I wish and pray that GBS gets sold. Don’t think it’s likely to happen anymore. Ginni now needs an army of robots to push Red Hat. The scam of the century: eliminate your sales staff and get Services staff to push your products with zero incentive.