SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

   Technology StocksIBM


Previous 10 
To: Glenn Petersen who wrote (8192)10/31/2018 1:45:04 PM
From: TigerPaw
   of 8200
 
IBM had a good Unix offering with it's Power Systems division and AIX. Ginni chose to cut off all investment in that technology in order to buy back stock at the highest of prices. Now AIX is just a caretaker group fixing requests for the few, mostly government, customers they have left. No resources to connect AIX to their cloud, or AI, or anything else they think is important to the future. Instead they pay top dollar for the same technology they could have had in house.

Rometty told CNBC that the deal should not be interpreted as part of any plan for her to transition out of her position as CEO at IBM.

Now that's a scary Halloween message.

Share RecommendKeepReplyMark as Last Read


From: Sr K6/8/2019 8:16:26 AM
   of 8200
 
First post in over 7 months.

IBM Cuts About 2,000 Jobs

Company continues to shift its business toward ‘high-value segments’

By
Updated June 7, 2019 1:53 p.m. ET

International Business Machines Corp. is cutting about 2,000 jobs in a round of layoffs this week, according to a person familiar with the matter, as the technology giant works to reshape its business.

“We are continuing to reposition our team to align with our focus on the high-value segments of the IT market, and we also continue to hire aggressively in critical new areas that deliver value for our clients and IBM,” a company representative said in a statement.

Share RecommendKeepReplyMark as Last Read


From: Sr K7/18/2019 2:26:43 AM
1 Recommendation   of 8200
 
WSJ

IBM Revenue Lags as Cloud Pivot Remains a Challenge

Despite revenue decline, profit exceeded Wall Street estimates

IBM said revenue fell 4.2% from a year earlier to $19.16 billion, the fourth consecutive quarterly revenue decline.
PHOTO: CHRIS HELGREN/REUTERS

By

Updated July 17, 2019 7:09 pm ET

IBM International Business Machines Corp. said revenue fell for its fourth straight quarter as it struggles to retool its business for the modern computing age, although Big Blue’s profit grew more than Wall Street had projected.

Revenue fell 4.2% from a year earlier to $19.16 billion. Profit rose 3.9% to $2.5 billion, as the company worked to scale back its exposure to businesses with smaller profit margins.

IBM has trailed Microsoft Corp. and Amazon.com Inc. as customers race to do more of their computing in the cloud—online services that free companies from the need to buy and maintain their own systems. As competitors report consistently strong revenue growth, buoyed by sales of their cloud services, IBM has absorbed a string of declines.

While IBM, led by Chief Executive Ginni Rometty, says its cloud business is growing—cloud revenue climbed by 5% in the second quarter—it is far behind the 41% annual cloud revenue growth Microsoft saw in its latest quarter.

Meanwhile, other parts of IBM’s business are in a gradual decline. Revenue in the company’s IT services division fell by 6.7% year-over-year in the second quarter as the company lost sales from lower-margin equipment it is transitioning away from.

Share RecommendKeepReplyMark as Last Read


From: Sr K1/30/2020 6:14:14 PM
2 Recommendations   of 8200
 
New CEO

Ginni Rometty is retiring after almost 40 years at IBM and will be succeeded as CEO by Arvind Krishna, who heads the company’s cloud and cognitive-software division.

IBM’s Ginni Rometty Steps Down as CEO

wsj.com

Arvind Krishna, who heads the company’s cloud and cognitive-software division, to succeed her

International Business Machines Corp. said Chief Executive Ginni Rometty is stepping down after a difficult eight-year run at the top of the iconic technology company as she struggled to deliver growth at a time other tech giants’ fortunes blossomed.




Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Sr K who wrote (8199)1/31/2020 10:27:16 PM
From: Glenn Petersen
1 Recommendation   of 8200
 
Nice move today.

In a November 2019 cover story about legacy tech companies, Barron’s wrote that IBM “might have the best chance at transforming itself for the cloud era.” The CEO change could kick-start the effort.

IBM Wants to Be the Next Microsoft. It’s Starting With a New CEO.

By Eric J. Savitz
Barron's
Jan. 31, 2020 6:50 pm ET

When Ginni Rometty took over IBM in January 2012, the company was still a major player in the tech world, shaping trends and generating solid returns for investors. As she exits the top job, IBM has lost its edge to major cloud players Microsoft and Amazon.com.

On Thursday afternoon, IBM announced that Rometty was stepping down as CEO, just as Amazon (ticker: AMZN) shares were soaring on earnings results. Big Blue named Arvind Krishna, a 30-year IBM veteran, as her replacement. He’ll become just the 10th CEO in IBM’s 108-year history. In recent years, Krishna has run IBM’s cloud business. The company calls him a “principal architect” of its recent $34 billon Red Hat acquisition, a deal central to IBM’s cloud strategy. IBM also named Red Hat CEO James Whitehurst to the newly created role of IBM president.

With Krishna and Whitehurst, IBM is conceding its mistakes in the cloud. (Under Rometty, IBM sales fell 25% and the stock lost 25% of its value.)

IBM shares rallied more than 4% on the CEO news, probably because the story line seems so familiar.

In 2014, Microsoft (MSFT) named Satya Nadella as CEO, succeeding Steve Ballmer. A 22-year Microsoft veteran, Nadella was running Microsoft’s cloud business prior to the appointment. As CEO, he has led a stunning turnaround. Microsoft shares are up almost fivefold during his tenure.

In Krishna, investors see a potential rerun of the Nadella story, but there’s a long way to go.

Wolfe Research tech strategist Steve Milunovich notes that in January 2013—shortly before Nadella took the CEO job—Microsoft and IBM had the same market value. Today, Microsoft is worth 10 times more than IBM.

Bernstein analyst Toni Sacconaghi has pointed out that Krishna is the first engineer to lead IBM in years. Rometty came from the services business, Sam Palmisano was a sales executive, and Lou Gerstner had a packaged-goods background.

“Given the structural forces at work in the industry—and the importance of cloud—IBM felt it was important—and we agree—to have a technologist as its CEO at this time,” Sacconaghi wrote to clients on Friday.

In a November 2019 cover story about legacy tech companies, Barron’s wrote that IBM “might have the best chance at transforming itself for the cloud era.” The CEO change could kick-start the effort.

But the challenge is significant. Amazon’s blowout fourth-quarter results were powered by 34% growth at its Amazon Web Services cloud unit, which is now operating at an annual run rate of $40 billion. AWS could reach $60 billion in revenue as soon as 2021. Microsoft results were driven by strength at its own cloud segment, known as Azure, which grew 62% in the December quarter.

Milunovich—who recently predicted an imminent CEO change—says the move is bullish for IBM, noting that Krishna and Whitehurst have “cloud and open source cred.”

He’s not convinced that Big Blue can catch up with Amazon and Microsoft, but now, he says, “there is more hope.”

Write to Eric J. Savitz at eric.savitz@barrons.com

barrons.com

Share RecommendKeepReplyMark as Last Read
Previous 10