Cringely pointed out that the cloud is now a commodity business, nothing special and companies have a wide range of choices for cloud support of their data, hence IBM is looking at it through their old dominance glasses, but it is like shopping for pasta. Many choices and Big Blue, Ginni, offers nothing new or spectacular to support an IBM Cloud initiative. Hence, no revenue. Same for mainframes.
Can you imagine if IBM had gone into the cloud business 4 years ago, like they should have? That's where we are with IBM, a day late and a few dollars short.
I'm sure big changes are in the works.. but they have nothing to do with Ginni leaving. I'm pretty sure that GBS and GTS are going to get sold, IMHO.
Gonna disagree on this basis. Bluemix. Bluemix is as new school as it gets. IBM needs to abandon GTS and GBS. They need a refocus on engineering, and not continue to fiddle with labor market price differences between the US and India/China... let that be someone else's domain.
Need a new CEO and management chain to revise the company, the current one is parasitic on stealing employee pension, cutting benefit, forced layoff while rewarding themselves with generous rewards. Buffet will have a heart attack soon.
back in the day , the brightest grads would flock to IBM ... though NOT with the
intention of making a career there , but to work for 3- 5 years , then go elsewhere
for real money
Ginny is a very confident woman and an able CEO ... she probably
thought that there was a good shot for IBM to do well , not
realizing that Sam drained out whatever Lou handed him ...
she had nothing to lose by taking the position , she also may not
have realized what a stinking BOD she had to deal with .. g
ROFL! The BOD has no clue. They are rubber stamp for any operational activities within IBM, including stock buybacks and raising the dividend, which has been part of IBMs financial reengineering plan since Gerstner was there. Here's some math to help you. Since the mid-90s, IBM has repurchased ~$160B in its stock. Today, IBM is worth about $160B in market cap…21% of what AAPL is worth, and 42% of what MSFT is worth. What do you think IBM would be worth if it had not used $160B in cash to buy back stock and prop up EPS; and what would EPS be right now?
And Cloud computing? Is there anyone who isn't entering that market? It's a dead end from a pricing perspective, and it doesn't bode well for the company as their bread n' butter profit business continue to shrink.
Well, what about the share buybacks? Won't that save the co ?
btw, what was your job at IBM ? or do you still work there ?
in an new school industry. When Warren Buffet took a big position you should have run for the hills as he things technology is the same thing as Heinz Ketchup.
Open source has killed these guys. Their products are old and expensive. Only a dinosaur CTO or CIO buys their stuff. Run.
Sentiment: Strong Sell
"If you are a new college graduates with a job offer from IBM and GOOG, AMZN, or FB, would you take IBM's job offer?"
This is actually a great way to pick buy and hold stocks