IBM sells Intel server business, company is doomed

Zemanta Related Posts ThumbnailIBM today sold its Intel server business to Lenovo, yet another example of Big Blue eating its seed corn, effectively dooming the company for the sake of short-term earnings. It’s a good move for Lenovo and an act of desperation for IBM.

Wall Street analysts may see this as a good move but then Wall Street analysts typically aren’t that smart. They’ll characterize it as selling-off a low-margin server business (Intel-based servers) to concentrate on a higher-margin server business (Z-series and P-series big iron) but the truth is IBM has sold the future to invest in the past. Little servers are the future of big computing. IBM needs to be a major supplier […]

Scarface: He’s got Boris Yeltsin eyes

scarfaceLast Wednesday night I posted my most recent column, turned out the lights in my office, walked down eight stone steps, tripped and smashed my face into the side of our house with a thunk that brought everybody running. Ten stitches and two days later I took the picture you see here in which I look way better. So if anybody wonders why I was a no-show tonight at the Computer History Museum’s reunion for the Homebrew Computer Club, this is my excuse. I can’t see well yet and I sure as heck can’t drive. Woz didn’t make it either I’m told.

I wish I had been at the museum, of course. Those who were […]

Fulfilling customer requirements is a weapon at IBM

ibm-300x158There are several new data points this week in the ongoing cratering of IBM as an IT vendor. The state of Pennsylvania cancelled an unemployment compensation system contract that was 42 months behind and $60 million over budget. Big Blue has been banned from the Australian state of Queensland after botching a $6.9 million SAP project that will now reportedly cost the people of Queensland $A1.2 billion to fix. That’s some botch. Credit Suisse analyst Kulbinder Garcha says IBM has a cash flow problem and downgraded the stock. At IBM’s Systems & Technology Group, management announced to employees a one week mandatory furlough at the end of […]

The New IBM — vampires in our midst

Ginni_RomettyA memo went out this week to managers in IBM’s U.S. Integrated Technology Services division requiring that future use of additional sub-contract (1099) workers must be approved in advance by a director or vice president. This includes coverage for sick days and vacations, not to mention inevitable customer emergencies. The memo further required that the renewal of any ongoing 1099 contracts include an across-the-board 10 percent reduction in labor rates to IBM. While this may not sound like news, inside ITS it has great meaning since the company has already been cut to the bone. There are, for example, reportedly two remaining IBM experts on HP-UX, HP’s version of Unix. Yet IBM supports customer running […]

IBM to customers: Your hand is staining my window

Ginni_RomettyA month ago I began hearing about impending layoffs at IBM, but what could I say beyond “layoffs are coming?” This time my first clues came not from American IBMers but from those working for Big Blue abroad. Big layoffs were coming, they feared, following an earnings shortfall that caused panic in Armonk with the prospect that IBM might after all miss its long-stated earnings target for 2015. Well the layoffs began hitting a couple weeks ago just before I went into an involuntary technical shutdown trying to move this rag from one host to another. So I, who like to be the first to break these stories, have to in this case write the […]