Our Thoughts on IT Matters

Keep Posted on Industry News and Events

   

Top 5 Reasons Why The Mainframe Empire will Strike Back in 2022

Intro The IBM Empire has suffered from a decade or more of decay. In 2012, IBM stock was trading at over $200 per share, and in 2022, it is trading at somewhere around $120, which is a value loss of 40%. IBM Revenue at the end of 2011 was $106.916 Billion vs. the $57.351 Billion it is at the end of 2021. This is a loss of $49.565 Billion of revenue over the last 10 years, which represents a reduction of more than 46% of its customer receipts. With a current market value of $110.7 Billion, IBM is just a shadow of its former self, as its market value was worth $216.72 Billion 10 years ago. That's a $106.02 Billion loss of value, hemorrhaging ...

Read More

Top 20 Mainframe Software Suppliers

BREAKING: The Mainframe is not dead. While smaller companies continue to get off the mainframe, it’s still too soon to write an obituary, as mid-sized businesses grew mainframe consumption from 5 to 15% and large enterprises grew from 15 to 20% in 2021. Recent analyst reports suggest that as much as half of the world’s information is still processed on the mainframe. The mainframe was a $2.3 Billion Industry in 2021, is expected to increase another 8% in 2022, and is projected to grow at a 3.2% CAGR from 2021-2029. Major hardware, software, and services companies that stand to benefit from this decade of mainframe market growth include Atos, ...

Read More

Time to Defuse Your Kyndryl Deal BEFORE it Detonates

Introduction Kyndryl is the new name for IBM’s managed infrastructure services business (what they refer to as IBM Global Technology Services), which spun out of IBM in November of 2021. Over the last 10+ years, IBM has fallen from a technology titan to a member of the walking dead, so how must Kyndryl feel about itself knowing that it is the discarded most unwanted stepchild of this unholy monster?   Unlike Microsoft, IBM has proven unable to reinvent itself as a cloud company. IBM was very well positioned to become a big benefactor of the cloud revolution, and the explosion of the data center utility model, but IBM continues to suffer from ...

Read More

Watson: IBM's Healthcare Moonshot Flatlines and Dies

Watson: IBM’s Healthcare Moonshot Flatlines and Dies And in so doing, the last body of the Ginni Rometty era at IBM is buried. We have written extensively on this topic: Admittedly, NET(net) has been an outspoken (but fair) critic of IBM and Ms. Rometty over the years. Shortly after she was named CEO, we documented our Top 10 Reasons Why Ginni Rometty Will Fail as IBM’s New CEO, and fail she did. The following year, we were honestly a bit surprised at how quickly she was failing, and published another article called IBM CEO Ginni Rometty Failing Fast, where we outlined the cannibalizing culture and performance of missed expectations she was ...

Read More

Calling All Budget Heroes: Seven Strategic Supplier Strategies for Year End

As we've been saying for months, post (hopefully) pandemic Market Conditions are ripe for you to act in driving business value into your company. If you've ever dreamed of being the budget hero, this is it. With the tumult in the supplier marketplace around M&As, shifts of products to the cloud, small company disruptions, the supplier competition has never been as robust. Once you digest the list below and want more, we're happy to talk. There's nothing we like better than chatting about how to get more value from technology suppliers - especially now. Big Software SAP Nearly 100% of SAP deals come due in December. This is driven by ...

Read More

Twenty-Three (and counting) Free Supplier Offers for Business Use During Covid-19

If you are like me, you have been receiving an avalanche of email notifications from every company you’ve ever done business with letting you know how they are responding to the Covid-19 crisis.  Did I really need to know how my auto mechanic is responding to the epidemic?  Probably not at the top of my list.  However, if you can get through the noise, there have been some legitimate offers to help companies support their teams and customers through the crisis.  Most of these offers are in the form of free services and software for an extended period of time (30-60-90 days and more).  Below, we’ve compiled a list of twenty-three companies ...

Read More

Breaking Dawn for IBM: Meet the New CEO, Mr. Arvind Krishna

Steven Zolman
Feb. 18,2020 | IBM

Leave it to IBM to bring in fresh new blood.  After nearly 40 years at IBM.  Ginni Rometty steps down and Arvind steps forward; someone with only 30 years in at IBM, so we can expect a radical departure from the past, right?  Jokes!!  Of course, we are jesting, but maybe (just maybe) this guy is different. Let’s see.  IBM’s new CEO (who currently heads up IBM’s Cloud and Cognitive Division), is credited with being the primary architect of IBM’s acquisition of Red Hat.  Certainly, he will be measured by how well IBM becomes more like Red Hat, rather than Red Hat becoming at all like IBM.  If Arvind is to be successful, IBM will need to become ...

Read More

Shrinking Value, Shrinking Sales, Sinking Ship: The Story of IBM's Ginni Rometty (Article #4)

Steven Zolman
Feb. 18,2020 | IBM

 Virginia “Ginni” Rometty has agreed to step down at IBM, and it’s without a doubt the best thing she has done for the company in her 8+ year tenure as its CEO.  The news sent the markets reeling and IBM stock soaring; up 5%.  The market clearly agrees that this is a long overdue and much needed move.  Ginni plans to step down as CEO in early April and retire officially by the end of the year with nearly 40 years of experience at IBM. NET(net) has been somewhat critical (but fair) of Ginni over the years. Shortly after she was named CEO, we documented our Top 10 Reasons Why Ginni Rometty Will Fail as IBM’s New CEO, and fail she did. The ...

Read More

Top 10 Audit Crazy Suppliers: 2019 Version!

Software audits have become an unfortunate but necessary revenue stream for most suppliers today.  And who can really blame them?  It usually works!  Just as governments have now come to rely on revenue from things like speeding and parking tickets, so to have software companies come to rely on software audits to move the needle on revenue or generate fear, using pressure and leverage to create opportunities for new licensing revenue. The reasons are well known, and really haven’t changed significantly in the last few years: Competition from disruptive suppliers Migration away from perpetual licensing to subscription-based cloud solutions ...

Read More

IBM: Spend Optimization Opportunities at Year End

We are still waiting for the great IBM turnaround led by Ginny Rometty since her installment as CEO in 2012.  IBM has pinned its turnaround on Watson AI, Blockchain and now “Hybrid Cloud” with the RedHat acquisition.  IBM’s “turnaround” has resulted in 22 out of 25 quarters of declining earnings.  To be fair, it’s the last three quarters that have shown growth, not driven by its strategic imperatives but rather has been provided by (drum roll please) – mainframe. Yes, the good old mainframe, with upgrades and increased storage needs driving strong revenue in Q2 and Q3. How the mighty have fallen, or better said, continue to fall as we have ...

Read More