Ask yourself where does IBM make money. System Z definitely, Enterprise Power (absolutely). Scale out Power (not so much). Linux Power (nope). Open power (yes, BUT mainly from IP license deals). Storage follows the same path. Enterprise storage makes money, but it’s a limited market.
As you move down the product line, there isn’t much money made. Tape actually makes money, but almost no one uses it like they used to. Flash definitely makes money and that is where the cloud has migrated to. Overall IBM makes money where they have a monopoly (System Z and Enterprise Power), or can license the IP (open power).
IBM also makes money on their purchased niche (flash) where they have also invested via their labs. IBM loses money where there is competition (storage) or low volume (Power scale out, and Tape). So if you move 80% of your customers to the cloud (say 30-35 data centers around the world) how many reps, product specialists, and CE’s do you need to service 35 locations. Not very many.
That same equation can be played out for each division (services/SWG, cognitive, and IGF).
The new IBM will have far fewer folks in it!