Open Source Cloud Authors: Liz McMillan, Zakia Bouachraoui, William Schmarzo, Elizabeth White, Yeshim Deniz

Related Topics: Open Source Cloud

Open Source Cloud: Article

IBM Software to Play Scrooge, Fire Cratchits Wholesale, Source Says

IBM Software to Play Scrooge, Fire Cratchits Wholesale, Source Says


IBM is reportedly supposed to play Scrooge and fire 13,000 people from its software unit.


At least that’s what the scuttlebutt inside says. The first indications of whether this news is true or not could reportedly start becoming apparent this Wednesday.


The job cuts are supposed to be part of a reorganization IBM is planning for the Software Group apparently because it’s unhappy with the fact that its no-growth software revenues have been frozen in time for the last few years and haven’t inched above $13 billion.


Management may have also been bitten by the consolidation bug given the acquisition of Tivoli, Informix, Crossroads and Rational, buys that kept software revenues from sinking during the post-bubble troubles. It’s said product units will be decimated.


Presumably IBM is also quietly biting its nails over the maybe-it-is-maybe-it-ain’t financial recovery.


There are reports that executives will be demoted, something HP has done, and that salaries will be capped. The Software Group currently bears a strong resemblance to a bank; it reportedly has something like 17 VPs.


An internal memo that IBM circulated on Monday says that “trends in the global software arena indicate” that its software “sales team is not organized to effectively meet our goals in 2004 and beyond” so it’s going to have a “different look” come January.


The memo says the changes in the sale structure are meant to:


* “Align resources to support the sale of middleware solutions


* “Place the focus of decision-making closer to customers


* “Focus on long-term customer success


* “Make major investment in generating new customers and increasing sales to occasional customers


* “Focus on the 12 specialty areas: Automation, Business Integration/Industry Solutions, Business Intelligence, Competitive Winback, Content Management/Document Management, Development Tools, Linux, Pervasive, Portals/Dynamic Workplace, Security, Storage and z-Series


* “Improve Telesales, channel and SMB sales


* “Better align with sales and distribution industry clusters


* “Increase/improve skills.”


The memo doesn’t specify what exactly will change but it does say that “Customers don’t think in terms of brands. They want integrated solutions for their IT and business process problems – regardless of brand or vendor.”


 So one gathers it’ll reassign sales teams from brands to its 12 new verticals, which are probably a bit different than people might think.


IBM’s solutions sell goes back to the year one so when the memo quotes IBM’s software prince, Steve Mills, as saying, “These days, companies don’t want to buy technology. They want to buy business solutions built for their industry,” he sounds kinda lame. One wonders if he’ll be as powerful as he’s been.


The Financial Times got a hint of what’s going on and figures the move, which it called a “massive reorganization” without mentioning anything about a reduction in force, will require a similar response from Microsoft, Oracle and SAP.


It said IBM is supposed to spend millions of dollars to lure third-party programmers to write for its infrastructure platforms and IBM’s own developers will be set to writing 60 middleware products tailored to each market segment.


More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.

IoT & Smart Cities Stories
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...