Outsourced IT probably hurt Delta Airlines when their power went out

DELTA_WING_UP_PFDelta Airlines last night suffered a major power outage at its data center in Atlanta that led to a systemwide shutdown of its computer network, stranding airliners and canceling flights all over the world. You already know that. What you may not know, however, is the likely role in the crisis of IT outsourcing and offshoring.

Whatever the cause of the Delta Airlines power outage, data center recovery pretty much follows the same routine I used 30 years ago when I had a PDP-8 minicomputer living in my basement and heating my house. First you crawl around and find the power shut-off and turn off the power. I know there is no […]

Is anyone at Yahoo! paying attention? Probably not.

yahoo-old-logo-v2So Verizon is buying the heart of old Yahoo! I include the exclamation point because it was always there in the Yahoo! we knew back when the Internet was young. $4.83 billion in cash is a lot of cash, but for Verizon it’s a way of buying into the future while buying what to many of us seems to be the past. So let’s get the business part out of the way: Verizon can see Yahoo! as a bargain because Yahoo! has nearly always been more profitable on a gross margin basis than Verizon, a phone company. Even Yahoo! in decline will pull Verizon up. But that’s not why I’m writing […]

LinkedIn gets lucky

lucky pantsSeveral readers have asked for my take on Microsoft’s purchase this week of LinkedIn for $26.2 billion — a figure some think is too high and others think is a steal. I think there is generally more here than meets the eye.

Microsoft definitely needed more presence in social media if it wants to be seen as a legit competitor to Google and Facebook. Yammer wasn’t big enough. LinkedIn fits Redmond’s business orientation and was big enough to show that Satya Nadella isn’t afraid to open up the BIG CHECKBOOK.

A simple financial analysis of the deal shows LinkedIn was way cheaper at $59 per registered member than buying Facebook for $329+ per member (if Microsoft […]

The mainframe is dead. Long live the mainframe!

mainframeZRumors are flying within IBM this week that the z Systems (mainframe) division is up for sale with the most likely buyer being Hitachi. It’s all a big secret, of course, because IBM management doesn’t tell IBM workers anything, but the idea is certainly consistent with Big Blue’s determination to cut costs and raise cash for more share buybacks. And the murmurs are simply too loud to be meaningless. Think of this news in terms of a statement made last week by an IBM senior executive: “In a world of Cloud Computing, it does not matter what equipment or whose hardware the cloud runs on. We are a Cloud company…”

This move by IBM would not […]

My first Seeking Alpha post ran today

IMG_0826 (1)I know many readers are tired of my (too) many columns about IBM. So I won’t be posting the latest one here at all. It’s over on the Seeking Alpha investor blog. You can read it here. I mention the post simply because some readers do care about such things.

The Seeking Alpha post is about IBM earnings and how the company is using old business to prop-up new business and not being at all upfront about what’s really happening.

The Seeking Alpha column is also a complaint about blog posts related to earnings in general because they are often written by people who think they know a lot about financial numbers but clearly know […]