IBM is splitting up!
With the recent announcement of its split up, interest in IBM is up. In particular, interest in its cloud business. This business was covered earlier this year in a post about Gartner’s 2020 ‘Magic Quadrant for Cloud infrastructure and Platform Services’. In this Magic Quadrant, IBM has been dangling at the bottom for years in a row. Since IBM as a whole was underperforming too, the inevitable has now been announced: IBM will separate its legacy business from its cloud business.
The question is what to expect from this new, reinvented IBM. Immediately, Wall Street had the answers. This split up is all about growth:
“IBM is essentially getting rid of a shrinking, low-margin operation given the cannibalizing impact of automation and cloud, masking stronger growth for the rest of the operation.”
“Haven’t figured it all out yet, but a great thing.”
As a result there is optimism at the Stock Exchange. Because this is the long awaited, next revolution after Gerstner’s!?
Wait a minute... 'cloud' and 'IBM'?
The Wall Street analysts may be positive, but some IT analysts wonder about IBM. Because they ask themselves: what is it? Moreover: where is it? Platformonomics’ Charles Fitzgerald took a deep dive into the numbers that are publicly available. As a result, he came up with some clear findings. Also, he drew several firm conclusions and he wrote a post about “IBM’s “Cloud” Business (or Lack Thereof).”
“When IBM talks about “cloud”, they’re just not talking about what the rest of the industry is talking about.” And therefore “TL;DR: IBM’s “cloud” should always have quotation marks around it.”
P.S. Last year, Charles Fitzgerald wrote a lucid post about the ‘hybrid cloud’ strategies of IBM (following its Red Hat acquisition), Microsoft (AzureStack), AWS (Outposts) and Google (prior to its Anthos introduction): “A Very Cold Take on IBM, Red Hat and Their Hybrid Cloud Hyperbole“.
I recommend reading it!