[HN Gopher] Jim Whitehurst to step down as IBM President
       ___________________________________________________________________
        
       Jim Whitehurst to step down as IBM President
        
       Author : sweettea
       Score  : 161 points
       Date   : 2021-07-02 14:41 UTC (8 hours ago)
        
 (HTM) web link (newsroom.ibm.com)
 (TXT) w3m dump (newsroom.ibm.com)
        
       | mrtweetyhack wrote:
       | Jim Whitehurst fired
        
       | stuff4ben wrote:
       | We all hoped it wouldn't happen, but RedHat is going to become
       | more blue rather than the other way around. It's the way with all
       | acquisitions unfortunately. As a current IBMer, I'm fascinated
       | with this and I wonder what Arvind's end goal was here? It
       | certainly doesn't seem like it was Jim's idea.
        
       | datahead wrote:
       | I like Whitehurst and have had the chance to meet him a few
       | times. If you want to understand his ethos check out "The Open
       | Organization". It details his transition from Delta to Red Hat
       | and the transformation of his leadership style being around a lot
       | of smart engineers and team players ready to constructively
       | challenge each other. Good read for anyone interested in building
       | inclusive company culture in tech.
       | 
       | Honestly, I thought IBM would be feel less rudderless with him at
       | the helm. I wanted IBM to become more 'red' and not RH to become
       | more 'big blue'- but it appears this isn't the case after all...
       | seems like a short tenure.
       | 
       | Anyone know more about the new leadership?
        
         | shadilay wrote:
         | This is exactly how I feel. I thought Jim would make IBM more
         | like redhat but in reality redhat became more like IBM.
        
           | Sylamore wrote:
           | That really shouldn't have been a surprise to anybody,
           | certainly no one who has been through a corporate merger
           | before.
           | 
           | The aquiring company always makes promises they won't change
           | the aquired company, the aquired company's management parrots
           | that line and in the end, the aquired company always gets
           | subsumed into the aquiring company.
        
         | htrp wrote:
         | In every acquisition the Acquirer imposes on the Acquiree.....
         | 
         | In this case, I'd bet that it's Arvind Krishna pulling people
         | out of IBM Cloud (his old division) to run the rest of "big
         | blue"
         | 
         | And yes, IBM will basically bleed talent from Red Hat for the
         | next 3 years until RHEL is a pale shadow of its former self.
        
           | [deleted]
        
           | paiute wrote:
           | I expect IBM will be an Irish or similar company soon.
        
             | raverbashing wrote:
             | It already is ;)
        
               | jhallenworld wrote:
               | Same as google..
               | 
               | https://www.google.com/maps/search/google,+dublin/@53.340
               | 165...
        
             | na85 wrote:
             | What's an Irish company, in this context?
        
               | simcop2387 wrote:
               | I believe they're referring to this,
               | https://en.wikipedia.org/wiki/Ireland_as_a_tax_haven
        
           | spitfire wrote:
           | Exception to this rule was NeXT purchasing Apple for negative
           | $400 million.
           | 
           | Most of the NeXT senior staff (jabs, avi, etc) Went on to
           | take over roles at Apple. They also brought in all the NeXT
           | technology and threw out Apples' Nextstep/Openstep->Mac OSX
        
             | kevin_thibedeau wrote:
             | They were acquired by their old boss so less of a culture
             | clash and no need for turf wars between opposing sides.
        
               | Ryder123 wrote:
               | Steve Jobs had been gone for 12 years, there was plenty
               | of culture clash and turf wars. Steve just managed to
               | prevail.
               | 
               | When he returned, the workforce was pampered and attached
               | to projects that weren't going anywhere. Steve removed a
               | number of perks, and killed some of the biggest, most
               | internally popular projects (Newton and OpenDoc come to
               | mind). Lot's of people left.
               | 
               | But Steve came back to Apple as a savvy politician. He
               | managed to get the board of directors in his back pocket,
               | and sell his vision of Apple to the employees. Those that
               | stayed, stayed because they came to believe in his
               | vision, not because he placated them.
               | 
               | I will say this though, I think there's a truth
               | underneath your statement. Apple attracted people who
               | wanted to change the world. The culture may have been
               | different, but there was still a core motivation in Apple
               | employees that came from Steve's original vision of
               | computing.
        
               | wrs wrote:
               | Minor correction: I wouldn't call Newton an "internally
               | popular product". At least, working on Newton I didn't
               | feel that way. And just before SJ came back, Apple had
               | spun Newton out into a separate company because it wasn't
               | really fitting in. SJ spun it back in and killed it.
        
               | eternalban wrote:
               | Would love to learn more about Newton - history and/or
               | tech. Any resources on the web or anything interesting
               | you may want to share?
        
           | atatatat wrote:
           | Anyone have any insight on why Red Hat sold their soul?
        
             | rst wrote:
             | The decision was in the hands of a board whose sole legal
             | goal, these days, is securing maximal financial return for
             | shareholders (and the shareholders agreed -- there was an
             | explicit vote). A soul is a luxury that companies don't
             | usually get to keep past IPO.
        
               | ghaff wrote:
               | _Sole?_ No. No matter how many times people repeat it.
               | Or, at least, companies can and do spend money on things
               | that can be argued to be in service of the long-term
               | profit and image of the company. Otherwise, how could a
               | company do charitable giving?
               | 
               | That said, if someone makes an offer for a public
               | company, the board _does_ pretty much need to put it to a
               | shareholder vote although they can negotiate for a higher
               | price and ultimately make a recommendation. But it 's up
               | to the shareholders. They're the ones that own the
               | company.
        
               | analognoise wrote:
               | "Otherwise, how could a company do charitable giving?"
               | 
               | Because it's a tax write-off and makes for good press?
        
               | rst wrote:
               | "long-term profit" _is_ the long-term financial returns
               | to shareholders -- and corporate philanthropy is
               | generally held to be justified in B-school circles only
               | in so far as it builds up marketable goodwill (again,
               | adding shareholder value), not for its own sake.
        
               | ghaff wrote:
               | At that point though, just about any reasonable actions
               | can be justified even if they're not in the interests of
               | immediate quarter earnings per share. And that's not what
               | most people arguing that the board is legally required to
               | maximize profits are talking about.
        
               | fossuser wrote:
               | This is why I'm in favor of founder controlled shares
               | (Founder's Fund companies tend to do this - Zuckerberg at
               | FB).
               | 
               | Founder's retain total voting control of the company and
               | can do what they think is in the best interest of the
               | company.
               | 
               | The board can complain and vote against it in favor of
               | stupid short-term decisions that harm in the company, but
               | in the end Zuck can tell them to fuck off and buy
               | instagram because he thinks it's the right thing to do.
        
               | ghaff wrote:
               | While I don't completely disagree, a Benevolent (or not)
               | Dictator For Life can have it's own set of problems. And
               | I'd not that it's generally _not_ considered a great
               | governance model for large open source projects--though
               | that 's obviously a somewhat different situation.
        
               | fossuser wrote:
               | I agree founder led companies are more like dictatorships
               | (though feudal earldoms may be a better analogy?), this
               | becomes less true in older companies no longer lead by a
               | founder. I agree there's risk (founder could lose touch
               | or go crazy), but I think that risk is less likely than
               | bad board decisions by non-founders. It's also bounded a
               | bit by the ability to retain high quality talent.
               | 
               | I also agree that for collaborative open source projects
               | a different approach is often preferable (as well as
               | governments too obviously).
        
             | houseofzeus wrote:
             | They were a publicly traded company and IBM offered
             | something like $190 a share when they were trading around
             | $120.
        
         | TheDong wrote:
         | > leadership style being around a lot of smart engineers [...]
         | building inclusive company culture in tech.
         | 
         | Red Hat was certainly an open company. I don't know if
         | "inclusive" is the right word though. "Inclusive" has strong
         | connotations now of people being welcoming, especially of those
         | that are different.
         | 
         | This is largely anecdotal, but my interactions with Red Hat and
         | external observations can better be summed up as "build a good-
         | old-boys club of mostly white males who are regularly assholes"
         | than "build an inclusive culture". I know those words are
         | harsh, but the experiences I've had and have heard of are
         | negative enough to warrant those words.
         | 
         | From my perspective, Red Hat seems to have created a culture of
         | hiring smart engineers and then giving them leeway to be
         | assholes under the guise of "open communication" and
         | "meritocracy".
         | 
         | Honestly, memo list feels like a microcosm of this entire
         | thing. It's a place where there originally were no guardrails
         | under the guise of "free speech" and "openness", and it quickly
         | devolved into a hostile place that made people feel anything
         | but included.
        
           | evol262 wrote:
           | As someone who spent 8 years inside Red Hat, this is exactly
           | why anecdotal "evidence" is garbage.
           | 
           | Complaining that an engineering company is full of mostly
           | white males (in an industry which is full of mostly white
           | mails) is an example of nothing. Red Hat started programs to
           | push LGBTQ+ people in 2014, women in leadership in 2017,
           | neurodiversity acceptance in 2018, black leadership in 2018.
           | You may think all of those things are late, but as driven
           | company missions which they spend real money on (and real
           | money on community involvement on), it's not insignificant.
           | 
           | A "good-old-boy's club" at a company where only 25% of
           | engineering was even in the US is a little mindblowing. The
           | vast majority of RH's engineers when I left were in Pune,
           | Brno, Tel Aviv, and scattered across Europe (eastern and
           | western), with a reasonable showing from Brazil.
           | 
           | Open source is, for better or worse, a place where a cult of
           | personality matters. "This is a bad idea and we shouldn't do
           | it" isn't personal. It's how the community interacts. It's an
           | invitation to argue back and say "this is a good idea because
           | XXX". This is basically how any upstream mailing list works
           | also.
           | 
           | While Red Hat did have some cultural problems, they were
           | primarily around resistance to establishing an engineering
           | presence in China (and it's hard to fault them for that -- my
           | team was truly geographically distributed, and adding someone
           | in APAC would have meant we literally never could have met at
           | the same time), and regional cultural attitudes.
           | 
           | I left last summer, along with a lot of other people, but
           | your comment is apropos of nothing Red Hat was from
           | 2013-2021.
        
             | wolverine876 wrote:
             | > garbage
             | 
             | For sensitive issues, it's hard to imagine this will lead
             | to a constructive, curious conversation. It would be
             | interesting, for example, if you and the GP tried to
             | examine why you have such different experiences? Maybe you
             | were in different places, working for different people, and
             | saw different things? Maybe different job descriptions? The
             | world is always much bigger than what we imagine.
        
               | evol262 wrote:
               | This is not a "sensitive" issue, unless you consider GP's
               | opinion "sensitive". I don't. I also don't think it would
               | lead to a curious, constructive conversation. There is
               | probably nothing OP could offer which would change what
               | the experience of 8 years in RH engineering showed me. At
               | best, it would lead to another long reply where I tried
               | to explain what RH was actually like versus GP's
               | impression.
               | 
               | It's essentially GP posting on the Debian/OpenBSD/LK ML
               | and saying "wow, these guys are arrogant". Well, they
               | have strong opinions, and they need to justify them. If
               | you don't have thick skin, you should probably avoid
               | upstream discussions. It doesn't mean you should cast
               | aspersions on the developers or their
               | communities/companies. Linus is an incredibly nice
               | person, but you wouldn't think it if all you saw was his
               | mails blasting Intel for Spectre/Meltdown. You'd have a
               | very different opinion of the man than who he is in 99%
               | of interactions, and commenting about it on HN would be
               | likely to get a reply similar to mine.
               | 
               | GP only had "anecdotal" experience with Red Hat versus
               | actually working inside the company. When I started, I
               | was worried that it would be different "behind the
               | curtain". It was not. The other who mentioned junior
               | engineers speaking up if they disagreed was spot on.
               | 
               | In 201x (2015? 2017? I dunno), RH changed their pay
               | structure from being bimonthly to biweekly in the US to
               | align with the rest of the world. There were hundreds of
               | replies to the entire company debating whether it was
               | better to pay us once a month and manage your money
               | better, or once a week to be more consistent, or...
               | 
               | That's what the company was. It was not by the time I
               | left. Granted, when I started, RH HQ was still on a
               | college campus. If all you ever read was upstream mailing
               | lists, you'd get the feeling that everyone (Linux, Theo
               | [not that he works for RH, obviously], Lennart, whomever)
               | other than Dan Walsh was arrogant assholes. That's not
               | representative of who they actually are.
               | 
               | Painting Red Hat with a broad brush from incidental
               | interactions versus the perspective of someone who spent
               | nearly a decade there is dramatically different. Did it
               | have problems? Sure. But none of the ones GP mentioned.
               | The world is much bigger than what GP imagined from his
               | anecdotal experience.
               | 
               | RH was a unicorn, and it's gone. LinkedIn last summer was
               | essentially rats fleeing a sinking ship. IBM spent $35B
               | on a company with no actual assets (a few patents) other
               | than smart, passionate people. They would have had to
               | really try to screw it up. And they did. I don't honestly
               | know if there will be another RH in the future, but I'm
               | hoping there will be.
        
               | zxzax wrote:
               | I agree with the rest of your comment but I just want to
               | respond to this part:
               | 
               | >If you don't have thick skin, you should probably avoid
               | upstream discussions
               | 
               | I have a humble request, please discontinue this attitude
               | on your own projects and please encourage other upstreams
               | to also discontinue it. I'm baffled as to why so many
               | open source maintainers seem to confuse needing to defend
               | technical decisions with "having a thick skin," they are
               | not the same. It's perfectly possible to be opinionated
               | and strongly scrutinize a technical decision, while also
               | not being harsh and rude towards the person presenting
               | it. If you believe those mailing lists are unsalvageably
               | hostile, then in my opinion, they should just be shut
               | down. That's not the kind of place to have official
               | project communication.
        
           | chakkepolja wrote:
           | > white males
           | 
           | This is HN not twitter.
        
             | mkr-hn wrote:
             | Dismissing a whole comment to focus on two out of context
             | words is very much like Twitter. I see several excellent
             | comments responding to the best read of it. And then
             | there's your comment.
        
           | Spooky23 wrote:
           | If you're the type of person who cares about and engages in
           | internal mailing list drama, why not keep it there?
        
           | datahead wrote:
           | I'm curious if our interactions could be biased. For example,
           | we're clients of RH (RHEL & Openshift) so I'm guessing we
           | interact with more presentable humans. Everyone I've met has
           | been genuinely wonderful and supportive across eng, sales,
           | product, TAM, etc. One of the few vendors I enjoy working
           | with.
           | 
           | I used inclusive in this context to mean that a junior
           | engineer is expected to speak up and offer input in an
           | executive meeting if they have something to offer. Cutting
           | through hierarchy, "good ideas come from everywhere". This
           | could be idealistic but it helped me in eliciting input.
           | 
           | I don't know what it's like to be on the inside or close
           | periphery to daily core operations at RH. I agree and
           | understand completely what you are saying. "Free speech" has
           | (recently?) been a guise to act terribly toward each other in
           | a number of settings. Trolls gonna troll. It's important to
           | maintain decorum in the workplace and a culture that defies
           | that can turn toxic quickly.
        
             | TheDong wrote:
             | My interactions have largely been meatspace and in open
             | source communities they are heavily involved in (outside of
             | k8s).
             | 
             | We do seem to have either interacted with difference slices
             | of the company, or gotten different impressions.
             | 
             | Which is all well and good, an aggregate of anecdotes is
             | better than just one.
        
           | [deleted]
        
           | slownews45 wrote:
           | Redhat are one of the few real open source companies that
           | made a commercial success of things.
           | 
           | From the outside they seemed pretty open. I've got no idea
           | about how they did with black / LGBTQ+ - but it seems a big
           | jump (in an industry where there are not that many black
           | female LGBTQ+ engineers) to say they were so bad.
           | 
           | What is the engineering company with lots of black female
           | LGBTQ+ folks? It might be helpful to be able to look at a
           | model that has worked rather than just trashing RedHat for
           | not being an engineering company that gets this right (and
           | all these companies are pushing initiatives in most of these
           | areas).
        
       | hal-employee wrote:
       | I thought Jim was going to be the next CEO.
        
         | datahead wrote:
         | I did as well, and was rooting for him.
        
       | gigatexal wrote:
       | Well so long to Redhat improving the culture at IBM
        
       | BrandoElFollito wrote:
       | One of my recent revelations was when I told my teen children
       | "... a company like IBM".
       | 
       | To what they said "what is IBM??"
       | 
       | They know all the large tech companies but that one was a
       | surprise to them, they had a look at Wikipedia and said "ah yes,
       | it was a great company in your times".
       | 
       | Time to get some wine.
        
         | shp0ngle wrote:
         | Even for me as a millennial, IBM is something of a history
         | note.
         | 
         | Yes, I know them from computing history lectures, and I liked
         | their ThinkPads (but they sold that to Lenovo when I was in
         | high school).
         | 
         | I have only directly interacted with IBM product once, and that
         | was Lotus Notes in one corporation I worked as a tech support
         | in university years. And it was horrible.
         | 
         | At university, I thought of IBM as "they do things that are
         | invisible but probably important?", but now I guess they don't
         | do even that.
        
           | mixmastamyk wrote:
           | Notes interface was crap but it did have some interesting
           | tech. Also it was bought, not originated at ibm. They could
           | have fixed it I suppose.
        
           | Bombthecat wrote:
           | Well, a lot of companies still have old ibm tech they will
           | never ever replace. Or replace them by new ibm tech.
           | 
           | And red hat /openshift is huge in germany. Only startups run
           | on k8s... Especially in insurance and banking.
        
         | allenu wrote:
         | I interned at IBM Canada in the late 90s and I remember back
         | then among my peer group, the only thing we cared about was
         | that they made great laptops in the ThinkPad line (now owned by
         | Lenovo, of course).
         | 
         | It definitely felt like an "old" company even then. I remember
         | they were very big on patents and were proud of the fact that
         | they had a huge patent war chest.
        
         | avereveard wrote:
         | IBM portfolio isn't targeted to consumers like Apple's or other
         | companies, even at peak IBM it was an office name, not a
         | household name. The only consumer facing product they had for
         | the longest time were cash registers, and those aren't
         | particularly hip as to live in consumer imagination
         | 
         | Edit: in today episode, hacker news forget they're a niche
         | cohort.
        
           | reggieband wrote:
           | It's funny because when I read something like this (and your
           | pretty harsh replies) I feel attacked! I mean, there are a
           | lot of reasons you might say this including but not limited
           | to: you weren't alive (or were too young) in the 70s/80s, you
           | were in a country that had a different culture, you grew up
           | in your own bubble.
           | 
           | And maybe, just maybe, my memory is bad. But I really feel
           | almost gaslit. Like where someone is telling me my lived
           | experience wasn't my lived experience. I remember IBM as one
           | of the most recognizable brands of the time. I recall in
           | social studies class a teacher talking about how IBM sold
           | calculating devices to Nazi Germany during the war. I
           | remember another class where we discussed IBMs infamous
           | "THINK" posters, which we discussed in relation to propaganda
           | and subliminal messaging. I remember that THINK poster
           | showing up as a gag in the early Simpsons TV show. When Apple
           | made the famous super bowl commercial where the athlete
           | throws a sledge-hammer at the George Orwell-esque Big Brother
           | screen, every news outlet was going on-and-on about how it
           | was a direct attack on IBM and the stodgy perception that PCs
           | were only for business. And of course the whole Deep Blue
           | chess match. Heck, even the Jeopardy Watson thing had IBM
           | branding all over it. In all of those cases IBM had a
           | cultural currency that anchored the discussion.
           | 
           | I would honestly be completely and genuinely surprised to
           | find any people in my age group born and raised in North
           | America wouldn't immediately recognize the IBM brand.
           | 
           | When I think of niche tech brands from that time I believe
           | Oracle and Cisco fit that "you only know if you know" kind of
           | niche. But IBM? It actually feels so completely unbelievable
           | to me that it can't be true. But hey, maybe you're right and
           | I'm wrong?
        
           | bluedevil2k wrote:
           | The IBM Thinkpad was probably the most well known laptop
           | brand for 10-15 years. Even now I would guess people still
           | equate "Thinkpad" with IBM even though they sold it off to
           | Lenovo 15 years ago.
        
             | twiddling wrote:
             | As an IBMer at the time, I remember having conversations
             | about how that decision would ultimately doom IBM to
             | irrelevance since it would remove IBM entirely from the
             | consumer market...
        
               | bluedevil2k wrote:
               | Don't forget they sold the tiny HDD division to Hitachi
               | (I believe) in like 1999 or 2000, which went on to earn
               | billions from the iPod. Not a lot of good business
               | decisions coming out of IBM.
        
               | cptnapalm wrote:
               | Despite not having one, I was mystified by such the
               | obviously terrible idea of selling off the daily "I love
               | my IBM" from who knows how many tech people's lives.
        
           | MattGaiser wrote:
           | > even at peak IBM it was an office name, not a household
           | name.
           | 
           | Even if this were the case, they would have been part of
           | nearly every office in one way or another and they certainly
           | are not now.
        
           | jodrellblank wrote:
           | As far as I'm concerned, the term "PC" comes from the "IBM
           | PC"[1]
           | 
           | > " _The PC was IBM 's first attempt to sell a computer
           | through retail channels [...] they partnered with the retail
           | chains ComputerLand and Sears Roebuck_"
           | 
           | > " _Reception was overwhelmingly positive [...] the IBM PC
           | immediately became the talk of the entire computing
           | industry.[38] Dealers were overwhelmed with orders [...] By
           | the time the machine was shipping, the term "PC" was becoming
           | a household name.[39] [...] Sales exceeded IBM's expectations
           | by as much as 800%, shipping 40,000 PCs a month at one
           | point.[40] The company estimate that 50 to 70% of PCs sold in
           | retail stores went to the home._"
           | 
           | It is worth noting how small the market was at the time
           | though, " _In 1983 they sold more than 750,000 machines_ " -
           | Apple has just passed 100,000,000 iPhone 12s in six months
           | since launch.
           | 
           | [1] https://en.wikipedia.org/wiki/IBM_Personal_Computer
        
             | avereveard wrote:
             | > It is worth noting how small the market was at the time
             | though, "In 1983 they sold more than 750,000 machines" -
             | Apple has just passed 100,000,000 iPhone 12s in six months
             | since launch.
             | 
             | which is the goddamn point. it was a name in tech circles,
             | and this community forgets how small tech circles were back
             | then
             | 
             | heck, someone even cited the cell processor in playstation.
             | outside the nerdiest of gamers, very few actually cared,
             | and the name that stuck and resonated from that item was
             | playstation, not ibm anyway.
             | 
             | want some name that public would recognize in the 80s? try
             | nintendo and sega.
             | 
             | >>>> I told my teen children "... a company like IBM". To
             | what they said "what is IBM??"
             | 
             | kid back then would have had the same reaction as the gp
             | kids at hearing ibm.
             | 
             | this community is completely out of touch and filled with
             | vitriol.
        
               | ghaff wrote:
               | In 1970, IBM was #5 on the Fortune 500. Now, a young kid
               | might not have heard of them because they never saw the
               | logo on anything or used any of their products. But I'm
               | pretty sure any reasonably well-educated adult [ADDED: or
               | college student/probably teen] would have heard of them
               | just like they would have heard of most of the largest US
               | companies.
        
               | avereveard wrote:
               | which means nothing, jesus, are people not able to follow
               | a thread anymore?
               | 
               | the whole thing was an answer to this:
               | 
               | >>>> I told my teen children "... a company like IBM". To
               | what they said "what is IBM??"
               | 
               | answer wouldn't have changed in the sixties, seventies,
               | nor eighties. mayyybe in the nineties, for the short
               | period laptop became sought after and thinkpad the peak
               | of the form factor.
        
               | jodrellblank wrote:
               | > which means nothing
               | 
               | ??
               | 
               | In 1997, IBM Deep Blue beat chess Grandmaster Gary
               | Kasparov and made international news. IBM sponsored the
               | Olympic Games for 40 years, they sponsored the 1995
               | Wimbledon tennis tournament, the ATP Tour, the US Open,
               | French Open, Australian Open tennis tournaments, the
               | Masters golf tournament, baseball games, auto racing,
               | college football. Dave Bowman wore an IBM logo on his
               | spacesuit in 2001 A Space Odyssey while people argued
               | that "HAL 9000" was based on "IBM" with the letters
               | shifted.
               | 
               | " _At the 1996 Centennial Olympic Games in Atlanta,
               | Georgia, IBM demonstrates the largest integrated
               | information technology system ever seen by a mass
               | audience._ "
               | 
               | " _The National Hockey League, in partnership with IBM,
               | form an alliance - NHL Interactive Cyber Enterprises -
               | that will use new and emerging technology to promote the
               | growth of hockey worldwide. The Professional Golf
               | Association of America teams with IBM to present a state-
               | of-the-art cybercast of the 78th PGA Championship which
               | takes place in August in Louisville, Kentucky_ "
               | 
               | " _IBM is the largest corporate contributor in 1996. Over
               | the last decade, IBM has contributed more than $1.3
               | billion to nonprofit organizations, schools and
               | universities - close to four million hours of volunteer
               | time in the United States alone,_ "
               | 
               | " _[1997] The U.S. Environmental Protection Agency
               | recognizes IBM for outstanding contributions in
               | protecting the Earth 's ozone layer._"
               | 
               | " _[1998] U.S. Vice President Al Gore announces Blue
               | Pacific - the world 's fastest computer - which is
               | jointly developed by the U.S. Energy Department's
               | Lawrence Livermore National Laboratory and IBM_"
               | 
               | " _[1998] The Guiness Book of Records officially
               | recognizes IBM for setting two world records in Internet
               | traffic on the 1998 Nagano Olympic Winter Games Web site:
               | "The Most Popular Internet Event Ever Recorded"_"
               | 
               | I can imagine that there were people who had never heard
               | of them, but they were an _enormous_ company with fingers
               | in hundreds of pies, in the news often, in all sorts of
               | ways - business, finances, sports, environmental,
               | education, charity, employment, investment in factories -
               | in newspapers, magazines, talking head pieces, they were
               | as household name as any massive company, nothing like
               | the  "do you know the manufacturer of the Playstation
               | graphics chip???" that you're presenting them as.
               | 
               | [1]
               | https://www.ibm.com/ibm/history/history/year_1999.html
        
               | avereveard wrote:
               | what I see is a lot of people thinking their bubble is
               | relevant for the public at large, even discounting the
               | rampant americentrism
        
               | ghaff wrote:
               | Now you're just being rude and I and others are telling
               | you that you're almost certainly wrong. I'm not
               | particularly surprised that a teen today wouldn't have
               | heard of IBM. (It's a large, but one of many, enterprise
               | computing suppliers. I assume they haven't heard of
               | VMware or Oracle either.) I actually would be surprised
               | if a typical child of the Space Age in 1970 wouldn't have
               | heard of it given that IBM pretty much was COMPUTER in
               | the public mind.
               | 
               | I'm pretty sure I would have known most of the largest US
               | companies as a teen, including IBM, because of their
               | cultural ubiquity, not because I had a PC (which didn't
               | exist).
        
           | sedatk wrote:
           | > even at peak IBM it was an office name, not a household
           | name
           | 
           | In addition to other examples in the thread, OS/2 Warp was a
           | direct competitor to Windows 95. We could be using OS/2 today
           | instead of Windows had it become successful.
        
           | QuesnayJr wrote:
           | In IBM's heydey, everyone knew who IBM was. Even before the
           | PC, IBM was synonymous with "computer". People knew computers
           | were important, even if they had never seen one outside of a
           | movie.
        
           | ComputerGuru wrote:
           | > even at peak IBM it was an office name, not a household
           | name
           | 
           | IBM was synonymous with PC for quite some time.
        
             | op00to wrote:
             | IBM was synonymous with COMPUTERS for quite some time.
        
             | avereveard wrote:
             | At a time when pc weren't household items, that came about
             | quite later
        
               | [deleted]
        
               | mech422 wrote:
               | PC's were big in the 80s, and 'PC' meant IBM PC (or
               | clone). The rest of us had 'commodore's or 'atari's - we
               | didn't have 'pc's. It was also the heyday of computer
               | magazine's from PC shopper to DDJ and Compute! Computers
               | weren't as unknown back then as people like to think..
               | 
               | So I'd argue IBM was a household name as far back as the
               | mid-80s.
        
               | ghaff wrote:
               | Much longer ago than that. I'm quite certain that long
               | before there even was an IBM PC and almost certainly
               | before I touched an IBM Selectric, I would have known IBM
               | as a computer company. If someone in the 1960s had been
               | asked to name a computer company, they would have named
               | IBM and I'm not talking about nerdy niche audiences.
        
               | ComputerGuru wrote:
               | It even overlapped with the period AOL was a thing.
               | Unless you're suggesting that wasn't a household name,
               | either.
        
             | tibbydudeza wrote:
             | Those PC ads featuring a Charlie Chaplin lookalike was well
             | known.
        
             | avidpsychlist wrote:
             | yeah, in my early youth "IBM" or "IBM Compatible" (for the
             | value shoppers out there, such as my family) was very much
             | a household name...if your household had a computer at all,
             | that is.
        
             | ulzeraj wrote:
             | Remember when IBM tech powered every popular video game
             | console? Not long ago. I thought having POWER machines for
             | gaming was very cool. It didn't worked out for some reason.
        
               | kjs3 wrote:
               | I dunno. I thought it worked out pretty well...it just
               | didn't last into subsequent generations. But then, in
               | gaming consoles, up until the current fad of "meh...just
               | make it a PC", every generation of console was,
               | architecturally speaking, new territory.
        
             | lancefisher wrote:
             | This is true. You had an IBM or an IBM compatible PC
             | running DOS and then Windows. I was well aware of IBM at a
             | young age.
        
               | browningstreet wrote:
               | How many times was that phrase used in computer
               | magazines? I kind of forgot about it, this thread has
               | brought me back to the days I would sift through computer
               | magazines at book stores.
        
           | cmxch wrote:
           | > cash registers
           | 
           | Don't you mean NCR, even in light of what IBM did for cash
           | registers?
        
             | kevin_thibedeau wrote:
             | There were IBM cash registers and they outperformed modern
             | equipment in scanner performance by a wide margin 30 years
             | ago. That division was sold off to Toshiba.
        
           | pessimizer wrote:
           | > even at peak IBM it was an office name, not a household
           | name.
           | 
           | This is not true.
        
           | trimbo wrote:
           | > even at peak IBM it was an office name, not a household
           | name
           | 
           | I'm curious to see data on this. My guess is that in the
           | early to mid 80s, IBM had to have been the top consumer
           | technology brand. At least in knowledge of the brand, even if
           | they didn't own one. Their Charlie Chaplin ads were
           | everywhere, then they spent an enormous amount of money
           | marketing PCjr[1].
           | 
           | [1] - "As part of $32.5 million in advertising for the
           | computer during 1984, it began what the company described as
           | the most extensive marketing campaign in IBM history, in
           | which 98% of Americans would see at least 30 PCjr
           | advertisements in the last four months of the year". (From
           | Wikipedia)
        
             | deckard1 wrote:
             | my impression of the mid '90s was that IBM also spent a
             | boatload on OS/2 Warp marketing as well. But by that time
             | everyone was on Windows and wanted Windows95. The ads for
             | Warp were everywhere, in print and on TV. IBM seemed to be
             | reliving the same mistakes they made with the PS/2 and
             | micro channel arch.
        
               | agumonkey wrote:
               | I can't picture IBM being consumer.. they were too deep
               | and too big. They didn't speak mainstream .. Jobs had
               | some stuff to sell (aesthetics, art, culture) .. IBM had
               | 'enterprise grade'.
        
               | mixmastamyk wrote:
               | Yes, they tried but it fell flat. Hindsight and all that.
        
             | indymike wrote:
             | IBM was synonymous with high tech in the 1970s and 1980s.
             | From the Styx song Mr. Roboto, "...my blood is boiling, my
             | brain IBM".
             | 
             | They were a huge deal.
        
               | mixmastamyk wrote:
               | Information Society, the band also had a few IBM
               | references in their geeky repertoire.
        
           | listenallyall wrote:
           | Not a household name? Not hip? Lacking imagination?
           | 
           | "How're you gonna do it? You're gonna PS/2 it!"
        
           | excitom wrote:
           | The IBM Selectric typewriter was ubiquitous in offices
           | everywhere, and IBM copiers and printers were quite
           | prevalent.
        
             | avereveard wrote:
             | in _offices_
        
         | dvh wrote:
         | The "I" in FAANG stands for IBM
        
           | DevKoala wrote:
           | One or two of those will be dropped in the next decade or
           | two. It is how things go.
           | 
           | In fact, Netflix is only there nowadays to avoid the acronym
           | from becoming offensive.
        
             | jhickok wrote:
             | And it doesn't include Microsoft for some reason. FANMAG
             | always made more sense to me.
        
               | zacherates wrote:
               | ... because FAANG was about compensation and MS is not
               | competitive (at least for mid-career hires).
               | 
               | Take a look at levels 62 / 63 at MS vs. comparable roles
               | at FAANGs: https://www.levels.fyi/?compare=Amazon,Google,
               | Facebook,Micro...
        
               | jhickok wrote:
               | I won't pretend to understand how these levels compare,
               | but it looks on par with Apple, no?
               | 
               | My understanding of FANG initially was that it was about
               | tech stock performance and not compensation.
        
               | ghaff wrote:
               | Yes, Jim Cramer coined the term AFAIK. Though it did map
               | reasonably well to comp, in part because tech workers
               | usually had RSUs as a major part of their comp.
        
               | theandrewbailey wrote:
               | Since Google is Alphabet, we can use FAAAM (or FAAAMN)
               | instead.
        
           | odiroot wrote:
           | IBM should definitely have a place there. Netflix is the one
           | that's not like the others.
        
             | CardenB wrote:
             | The acronym refers to pay, not tech. IBM doesn't match the
             | pay of FAANG
        
               | ghaff wrote:
               | It's come to mean that but it was originally about stock
               | --between which there was correlation.
        
               | ternaryoperator wrote:
               | Nope. It refers to the stocks of the companies. Nothing
               | to do with pay[0]
               | 
               | [0] https://www.investopedia.com/terms/f/faang-stocks.asp
        
             | amelius wrote:
             | And where is the M for Microsoft? The acronym doesn't make
             | much sense if you ask me.
        
         | genedan wrote:
         | When I was growing up, my mother was at IBM designing software
         | for the space shuttle, and the street next to my house was
         | named IBM. I was named after one of their senior engineers. So
         | the company played a big part in my childhood and was ever
         | present in the community, and we still have lots of IBM space
         | swag stored away in the attic, including the silver snoopy
         | given to my mom during her time there. The stock grants paid
         | for our education, and my mom still lives off the pension they
         | had. The early 90s was such an optimistic time.
         | 
         | At some point IBM sold off the unit, vacated the office block,
         | and the street was renamed to that of the new company that
         | moved in. Eventually, all the shuttle workers would be laid off
         | after the demise of the program, so it's sad to see how it all
         | ended.
        
           | pm90 wrote:
           | Thanks for sharing your story.
           | 
           | I wonder if the children of FAANG employees would feel
           | similar to what you felt. I suspect that may not be the case,
           | since most companies don't really make such long term
           | investments anymore.
        
             | shp0ngle wrote:
             | I think those companies still exist, but they exist in
             | China.
             | 
             | I might be wrong though. I just see the growth of China and
             | decline of the US, and I cannot stop feeling like those two
             | are connected. But what do I know. People were afraid about
             | Japan before.
        
               | shadilay wrote:
               | China like Japan has it's own problems. In the case of
               | the US, offshoring of manufacturing surely played a part
               | but greater than that is the financialization of the
               | economy, decline of the middle class, and the capture of
               | wealth generation in the hands of a few.
        
               | freeone3000 wrote:
               | And now the world's largest car manufacturer is Toyota,
               | the biggest gaming providers are Nintendo and Sony, and
               | Mitsubishi and Hitachi are important players in every
               | industry. American manufacturing in the same industries
               | are down. People seeing the growth of Japan and decline
               | of the US were only wrong in a matter of degree.
        
         | wolverine876 wrote:
         | IBM doesn't make consumer products, as they did in decades
         | past. I would imagine there are a lot of successful technology
         | companies without a consumer side that your kids aren't
         | familiar with. Booz Allen?
        
         | agumonkey wrote:
         | I always remind myself that hollerith machines was born in the
         | 19th century.. it's a long game :)
        
         | jve wrote:
         | I'm 33, allergic to IBM (and Oracle), want to stay away from
         | their products if possible.
         | 
         | Luckily I know nothing about IBM, only the spectrum protect
         | backup... I mean why everything has to be so complicated? Ugly?
         | 
         | Props for having documentation + they support lots of OSes and
         | features. But when it comes to management... even Linux people
         | in my office make fun of that product, because how awkward,
         | complex and time consuming it is to do particular tasks there.
         | I showed Veeam admin some spectrum protect stuff, because he
         | had todo some task there... He just laughed out loud.
        
           | theandrewbailey wrote:
           | From what little exposure that I've had to IBM, Oracle, and
           | professional HP products, it's the result of a different
           | evolutionary line of computing. It predates personal
           | computing (from back when there was allegedly market for 5
           | computers[0]), so its interface and naming conventions are
           | foreign to each other, as if it lives in ivory towers and
           | never mixes with anything else. It's painfully obvious that
           | personal computing moves much faster and is easier to use.
           | 
           | [0] https://freakonomics.com/2008/04/17/our-daily-bleg-did-
           | ibm-r...
        
       | htrp wrote:
       | Stock is down 4%
        
       | crb002 wrote:
       | He sold _zero_ IBM System Z mainframes to AWS.
       | 
       | He let thousands of IBM point of sale systems to be replaced with
       | crap that can't buffer keystrokes - instead of modernizing the
       | SDKs for those who know Linux and not AIX.
       | 
       | He bought RedHat, but not Digital Ocean so they had a cloud
       | consumers trust.
       | 
       | He didn't win a serious contract with Facebook for kernel tuning.
       | He didn't win a serious contract with AWS for AWS Linux 3.
       | 
       | He let COBOL and APL continue to die instead of funding modern
       | tooling.
        
       | rvz wrote:
       | Jim Who?
       | 
       | The man who sold the red hat to big blue?
        
       | peytoncasper wrote:
       | Cloud is the new mainframe. And IBM Cloud is terrible in
       | comparison.
       | 
       | All you ever hear about is how challenging Kubernetes is to
       | manage. IBM invested in self managed Kubernetes essentially while
       | everyone else built SaaS Kubernetes Engine's.
       | 
       | IBM feels like a collection of revenue lines that hasn't really
       | tapped into any new streams lately.
        
         | jhickok wrote:
         | For what it's worth IBM has transitioned to OpenShift and it is
         | a very successful product line. I think there are a lot of
         | problems with marrying OpenShift with IBM's other products but
         | OpenShift on IBM Cloud is pretty good.
        
           | peytoncasper wrote:
           | I'm sure it's successful to some degree. They bought it,
           | because it was a successful enterprise implementation.
           | 
           | That being said, I'm not sure why I would leverage OpenShift
           | on IBM Cloud when I can get practically the same thing from
           | the other providers with a stronger ecosystem of tooling.
           | 
           | Which leads me back to OpenShift on-premise and I'm just not
           | sure that is where the market is at or headed right now.
        
             | jhickok wrote:
             | I view OpenShift, ultimately, as a bridge technology that
             | leads to pure cloud k8s, but there is a heck of a lot of
             | money to be made in the meantime.
             | 
             | IBM Cloud gets new OpenShift features quicker than other
             | cloud providers.
        
       | thedougd wrote:
       | IBM can recover from this with some stock buybacks. Maybe borrow
       | to get it done.
        
         | mathattack wrote:
         | Only maybe? They're bleeding cash with the failed split. Of
         | course they will need to!
        
       | encryptluks2 wrote:
       | I saw this coming even before the acquisition. While Red Hat did
       | help fund some excellent open source work, usually through
       | acquisitions, they would never have been my first choice for
       | partner support. Red hat is for companies that have no clue what
       | they are doing and caters to executive management who wants their
       | name in marketing so they can talk about how they helped make the
       | company more successful so they can find a higher paying
       | executive role at another large enterprise. Once a company has
       | some descent Linux engineers and developers, they then switch to
       | CentOS, Ubuntu, or some lighter weight distro. At that point, if
       | you continue to engage with Red Hat, usually because some
       | executive is getting kickbacks and has signed multi-year
       | contracts, you just end up doing all the work yourself realizing
       | that a lot of your problems are caused by Red Hat and that you'd
       | be better off with another distro entirely.
        
       | throwawayoung wrote:
       | Early redhatter here. I will always have mixed feelings about
       | Jim. On the one hand, I fully respect him, what he does, and how
       | he does it. I think he was a good choice for redhat at the time.
       | 
       | However, his start also coincided with then end of the really fun
       | times.
        
         | jhickok wrote:
         | I feel that is normal in the lifecycle of a growing business--
         | at some point you have to exit startup mode and get corporate,
         | no?
        
           | markus_zhang wrote:
           | Yeah but then the fun ends unless you are into the manager
           | mindset.
        
         | pm90 wrote:
         | Could you expand on that? Did he centralize planning or tighten
         | budgets or something?
        
           | ghaff wrote:
           | As someone who was following Red Hat as an industry analyst
           | at the time, it was growing a lot and everything that implies
           | came with it. To the sibling comment's point, that meant
           | moving away from "everyone" knowing everyone else, moving
           | away from a lot of people being involved with and
           | knowledgeable about most of the company's technology (though
           | JBoss was still sort of its own island at the time), and lots
           | of things being sort of ad hoc. A lot of people had pretty
           | flexible roles.
           | 
           | I won't say things totally changed but, as is necessary as
           | you grow, more process was put in place, there was a more
           | deliberate use of data, a shift from "random acts" that made
           | sense in isolation to more programmatic ways of doing things.
           | 
           | These things weren't bad and were in fact needed. But, even
           | if Red Hat wasn't really still a startup when Whitehurst took
           | over, it wasn't really a mature large company either.
        
       | echelon wrote:
       | I'd really like to see IBMers talk about the past, present, and
       | future of the company. It looks pretty pale to me.
       | 
       | Back in the Thinkpad era, IBM had a lot of cool stuff going on.
       | But now it seems like a shadow.
       | 
       | Watson and IBM cloud look like flops. The email fiasco is weird
       | and should never have happened.
       | 
       | What did buying Red Hat accomplish? As an outsider, it doesn't
       | seem to have infused any new ideas, and the changes to centos
       | just made people move further away AFAIK.
       | 
       | Or buying stuff like the Weather Channel?
       | 
       | The chip business looks promising. Maybe IBM should double down
       | there?
       | 
       | Consulting, in general, seems to not be a great tool to sharpen
       | internal capability. The constant layoffs of the past have also
       | had a hugely deleterious effect.
        
         | acoard wrote:
         | >What did buying Red Hat accomplish? As an outsider, it doesn't
         | seem to have infused any new ideas, and the changes to centos
         | just made people move further away AFAIK.
         | 
         | I am not an IBMer though have worked with many former IBM
         | folks, and work with Red Hat on and off every month or so. From
         | what I've gathered, Red Hat is the new core of IBM. The goal is
         | to grow Red Hat, specifically their OpenShift offering (which
         | is huge in gov't as it allows for hybrid clouds), and make
         | centre the biz around that then the "traditional" IBM
         | consulting style.
        
         | Retric wrote:
         | IBM's core business is boring crap that doesn't make the news.
         | So, how the company is doing has little to do with the kinds of
         | things you hear about. That said, their market cap peaked in
         | 2012 at 240B vs 130B today and their revenue and profits are
         | similarly down, which suggests things haven't been going well
         | for a long time.
        
         | throwaway57754 wrote:
         | IBM bought Red Hat for OpenShift. IBM buying Red Hat was
         | supposed to propel OpenShift and Red Hats portfolio into the
         | C-suite connections IBM had. Instead, it seems IBM has force
         | marched Red Hat to focus all their energies on OpenShift at the
         | expense of their larger portfolio. OpenShift probably isn't
         | performing as well as IBM expected, and even with 4 it still
         | carries the "OpenShift is not Kubernetes" vibe. IBM also has a
         | bunch of products in their portfolio that compete with Red Hat.
         | 
         | On the IBM side, weird shit is a foot. The GTS spinoff into
         | Khndryl is very, very bizarre. They're a profitable part of IBM
         | but need to be excised, quickly? It's causing chaos for
         | accounts that had deep GTS coverage as the account teams are
         | basically adversarial. The rest of IBMs portfolio is stagnating
         | as they chase fads and lose to niche players with better
         | overall value. Especially with the Data/AI space, startups are
         | killing them.
        
           | rescbr wrote:
           | ex-IBMer here, product side: GTS sometimes had better private
           | pricing and incentives for products from competitors that
           | other business units couldn't match due to internal pricing
           | policies.
           | 
           | Now try explaining to the customer why IBM is recommending an
           | IBM's competitor while IBM is also offering the same product
           | with a better price directly to the customer. It doesn't make
           | sense at all.
           | 
           | Consider two service-focused business units (GTS and GBS)
           | that sometimes are complementary but mostly adversarial and
           | it is chaos for the customer.
           | 
           | Spinning-off GTS (and I dare say, GBS too) is better for the
           | customer and for the product business units.
        
           | jhickok wrote:
           | Containerizing IBM's software and forcing it all on OpenShift
           | is such a weird move to me. When you force your customers to
           | become Kubernetes admins when all they really want is some
           | other solution I think you have a drastically smaller target.
           | 
           | I think a lot of Red Hatters are tired of having the IBM
           | sales force show up in their OpenShift accounts asking about
           | upgrading them to Cloud Paks.
        
         | kingsuper20 wrote:
         | >Back in the Thinkpad era, IBM had a lot of cool stuff going
         | on. But now it seems like a shadow.
         | 
         | I remember their stuff from the pre-Thinkpad era. Quite a
         | company. Working for both a large competitor and for a small
         | company that was trying to sell to them they seemed clumsy but
         | still had an amazing portfolio.
         | 
         | My guess is that they just need to merge/break-up/reconfigure
         | into oblivion. Just another AT&T/HP/ITT/Polaroid/Xerox
        
           | matt_s wrote:
           | Having worked at one of those that also did business with
           | IBM, I felt there was an ethos I observed in the upper ranks
           | that is hard to describe. It was like they felt they were
           | better than others, had large egos about their brand and had
           | a certain stuffiness to them where they knew what was right
           | because it was them. Like a business book/MBA club of sorts.
           | Kinda hard to describe it.
           | 
           | Anyhow I wonder if this better-than-thou, stuffy corporate
           | attitude leads itself to internal re-org cycles where it
           | results in no identity and no central vision, just internal
           | battles.
           | 
           | It seems like other similar size large companies, like Apple,
           | can be successful so maybe their leadership doesn't show
           | these character traits?
        
             | kingsuper20 wrote:
             | When I had to deal with some small tendril of IBM, I think
             | the anti-trust suit was still in the works. It probably
             | scarred their dealings with other companies to the same
             | degree that their dominance did.
        
         | strife25 wrote:
         | This Stratechery article from 2018 nailed it for me:
         | https://stratechery.com/2018/ibms-old-playbook/
        
         | osipov wrote:
         | ex-IBMer here. I rode this from 2001 until 2016 when it became
         | clear that breaking up the company (as they recently did) would
         | become the only sensible path forward.
         | 
         | While many poor decisions were made inside of the company, I
         | ultimately blame Wall Street for IBM's downfall. Remember that
         | back in 2011, Palmisano finished strong with IBM's Watson
         | winning Jeopardy, IBM Software delivering consistent >80%
         | profit margins on $10Bs in revenue, and a strong services
         | backlog.
         | 
         | Many don't know that Palmisano's departure was preceded by a
         | Wall Street mediated competition for the successor. IBM
         | Software Group SVP, Steve Mills, was the obvious choice. The
         | guy was a lifetime IBMer, intellectually superb, allegedly with
         | photographic memory, effective public speaker, and with a
         | proven history of leading (at the time) the 3rd largest
         | software business in the world.
         | 
         | Unfortunately, Wall Street didn't like Mills because he did not
         | come across well on CNBC. The guy is chubby and doesn't look
         | like a conventional CEO. So Ginny Rometty, with a claim to fame
         | based on building IBM Global Business Services from on the PwC
         | acquistion became the leading candidate. Ginny is "media
         | friendly" and the diversity factor didn't hurt.
         | 
         | Once Ginny came on board, leadership style changed from long-
         | term to fickle and neurotic. Instead of committing to the hard
         | work of building complex technology (e.g. cloud), any signs of
         | technological challenges became reasons for business strategy
         | changes at the top level. What started as a build decision (IBM
         | SmartCloud) turned into a buy decision (Softlayer), followed by
         | a build decision (IBM Bluemix), and so on.
         | 
         | However, Ginny's biggest failure was her inability to raise
         | capital on Wall Street. IBM's engineers weren't failing at
         | building cloud technology because the engineers were terrible
         | (some were, normal distribution rules still apply) but because
         | cost cutting policies starved engineering teams though
         | attrition and lack of hiring. Staffing a team meant bringing in
         | internal hires w/o the right skill set or taking a gamble on
         | offshore (global) resource. At the same time Google was hiring
         | left and right with comparative ease (as an aside, now they are
         | dealing with the consequences).
         | 
         | Bottom line, Ginny couldn't get the capital to fund internal
         | engineering efforts for the scale of the transformation needed
         | to sustain IBM's success with machine learning (Watson) and
         | cloud.
         | 
         | I place the blame on Wall Street since they made the bet on
         | Ginny and then left her out to dry.
        
           | thedougd wrote:
           | Sam's EPS target was the singular focus during that time.
           | Executive management squeezed everything for the last penny
           | during that period, IMO setting the path to failure.
        
             | 2sk21 wrote:
             | Exactly! Palmisano was squeezing every last cent and
             | starving the company of resources for developing the
             | future. Even by 2008, it was clear hat cloud computing was
             | the next big wave and yet IBM built out its own half-baked
             | internal cloud offering before acquiring Softlayer
        
           | josipt wrote:
           | Wall Street? Couldn't raise capital? Maybe IBM could have
           | used some of the $110 billion dollars they spent on buying
           | back shares to, I don't know, build a real business? IBM
           | could potentially have built what is now AWS but what did
           | they do instead? Share buybacks. What do they have to show
           | for that?
           | 
           | IBM has been essentially a financial engineering machine for
           | many years, with their ridiculous 5-year EPS targets and all
           | the rest of it. While I was there they even removed plants,
           | copiers, coffee machines, televisions, pads, pencils, pens
           | and everything else in sight to "save" money.
           | 
           | The "leadership" of IBM drove the company in to the ground,
           | period.
        
             | osipov wrote:
             | >Maybe IBM could have used some of the $110 billion dollars
             | they spent on buying back shares to, I don't know, build a
             | real business?
             | 
             | You just answered your own question. As I pointed out,
             | leadership was "picked" by Wall Street investors. Share
             | buybacks and financial engineering exist to keep the
             | investors happy.
             | 
             | If they didn't buy back shares and invested in R&D the
             | stock would have gone straight down instead of sideways. As
             | I said the leadership "couldn't get the capital to fund
             | internal engineering efforts for the _scale_ of the
             | transformation needed to sustain IBM's success"
        
             | throwawaygal7 wrote:
             | Agree completely , the leadership was selling the farm
             | piece by piece.
        
           | xadhominemx wrote:
           | IBM generates $15b of free cash flow per year. They did not
           | need to raise anything from Wall Street. And the notion that
           | Wall Street would somehow interfere with an internal
           | succession process because they thought a brilliant tech
           | executive was not very polished is laughable.
        
             | osipov wrote:
             | >IBM generates $15b of free cash flow per year.
             | 
             | The cash flow number obviously varied year to year.
             | 
             | If you think that Wall Street doesn't have a veto power in
             | the selection of a public company's CEO you are very naive.
        
           | throwawaygal7 wrote:
           | I was an intern at IBM from 2010-2015, and then an full time
           | engineer for a short while before moving on.
           | 
           | I agree completely that the change in leadership marked an
           | inability to really bring WATSON to market, and some other
           | products too.
           | 
           | While I was an intern, I sat next to ExtremeBlue interns and
           | team members working on Watson. The technology was awesome
           | and they were working like mad. Sleeping under the desk. By
           | 2015 the push had stopped and everyone knew it was a failure
           | to launch.
        
             | jollybean wrote:
             | "I agree completely that the change in leadership marked an
             | inability to really bring WATSON to market, and some other
             | products too."
             | 
             | Watson for all it's academic glory, was kind of vapourware
             | as a product.
             | 
             | It just never really did anything materially useful. They
             | did a lot of hospital trials that fizzled. Way, way over-
             | promised.
             | 
             | A little bit along the lines of ElementAI - it's hard to
             | commercialized AI directly.
             | 
             | Google et. al. do it right by incrementally improving
             | things like translation, voice recognition ... it's making
             | waves within academia for it's quality, but it's something
             | consumers are hardly aware of.
             | 
             | Since IBM is not a consumer company, there's only so much
             | sugar and hype that Watson can provide (winning Jeopardy
             | was a brilliant thing) before the rubber has to hit the
             | rode.
             | 
             | I'm not so sure if it's fair to blame a new leader for that
             | one ... because I'm not sure what a realistic business
             | application for Watson would be. (Maybe there are hard and
             | real products, but they're probably going to be very
             | context specific etc..)
             | 
             | Building great tech is hard enough, then building great
             | products on top of that - just as hard. Doing it within a
             | massive multinational that makes it's money from grifting
             | governments and megacorps into paying for really expensive
             | services probably just is not going to work.
             | 
             | MS, Google, FB ... they have the operational fidelity and
             | product line to leverage AI internally, IBM, not so much.
             | 
             | I don't know what the future of IBM looks like aside from
             | just being another Accenture.
        
             | 2sk21 wrote:
             | I worked in the Watson group during the time you mention -
             | the problem that they made was to attempt to productize the
             | original Jeopardy system. The Jeopardy system was built
             | with the single-minded goal of winning jeopardy. It was
             | much too heavy weight for real-world applications - it
             | required unbelievable computing resources and simply could
             | not be deployed in the cloud as it could only run on Power
             | machines.
             | 
             | Ultimately much of the system had to be rewritten and this
             | took years by which time, it was just another competitor in
             | a crowded market
        
           | jldugger wrote:
           | > Google was hiring left and right with comparative ease (as
           | an aside, now they are dealing with the consequences).
           | 
           | In the five years since you left IBM in 2016, GOOG has
           | tripled in value, while IBM has lost 8 percent. I think I
           | know which set of consequences I'd prefer to deal with as an
           | executive, shareholder, or employee.
        
         | thedougd wrote:
         | IBM once had a deep, deep bench of engineering talent and
         | squandered it away. They failed to maintain the engineering
         | culture while making many strategic mistakes (cloud).
         | 
         | Starting in the late 2000s and early 10s, executives were
         | crying for 'cloud skills' as part of their continuous
         | 'workforce remix'. Did Amazon build AWS by hiring cloud skills?
         | Of course not. You build a cloud with a wide array of talent
         | including hardware, chip design, software, and systems
         | engineering. IBM had all that available in house.
        
           | geodel wrote:
           | True. I remember in that big data hustle in last decade, some
           | morons were claiming that Google is facing problem in hiring
           | Hadoop talent. Imagine that!
        
         | chr15p wrote:
         | > The chip business looks promising. Maybe IBM should double
         | down there?
         | 
         | I always thought IBM should have bought ARM, the combination of
         | IBM chip tech plus ARMs designs and Red Hat for the software
         | stack would make for an amazing tech business.
        
           | kjs3 wrote:
           | This is a really nifty 'what it' to think about, but I don't
           | think IBM needed ARM to have owned the world. They had/have
           | POWER & PPC, and the associated development ecosystem, which
           | gave them processor coverage from low-end embedded thru
           | supers. They just needed to tweak their go-to-market to match
           | the flexibility that ARM has given their licensees and it
           | could have been a very different story.
        
         | darksaints wrote:
         | The chip business has so much potential, and they're wasting it
         | all because they're so stuck in their enterprise marketing and
         | sales model. There is so much demand out there for non-X86
         | workstations with high performance and large core counts, and
         | they won't even touch it. There is so much demand out there for
         | highly scalable and energy efficient cloud professors (to the
         | point that they're developing them independently), and they
         | won't even touch it. Just sell the damn processors to the
         | people who want them already!
        
           | xadhominemx wrote:
           | There are many very well funded companies working on merchant
           | non-x86 processors. There's no reason to think IBM would be
           | any better at it or that customers would prefer to buy from
           | IBM.
        
             | kjs3 wrote:
             | _There's no reason to think IBM would be any better at it_
             | 
             | I dunno...they've been building processors since the 1950s.
        
       | nomoreplease wrote:
       | When I talk to former IBMers (including a VP), it seems much of
       | the outward "success" there is financial engineering, yet the
       | business is crumbling in reality. Jim leaving amidst a chaotic,
       | failed email migration that is impacting sales is not surprising
        
         | mathattack wrote:
         | They long ago moved from the innovation business to the share
         | buyback business. It's crazy that a tech company struggles so
         | much to innovate that the best use of their cash is either
         | returning money to shareholders, or buying companies on their
         | behalf.
        
         | djrogers wrote:
         | > leaving amidst a chaotic, failed email migration that is
         | impacting sales is not surprising
         | 
         | I'm not sure if you're trying to imply causation here, but vast
         | sweeping changes like this rarely happen in a matter of days -
         | it's far more likely that this has been in the works for a
         | while, and the email mess is coincidental.
        
           | MattGaiser wrote:
           | It speaks to the standard of work they do at IBM.
        
           | nomoreplease wrote:
           | Coincidental yes. I was not implying causation.
        
         | sidcool wrote:
         | Can you shed some more light on email migration? What was it
         | about and why did it fail?
        
       | kwelv wrote:
       | Oh
        
       | vlovich123 wrote:
       | An email migration was that important that they decided to shake
       | up quite a bit of the exec team? Or was the email migration stuff
       | just internal politics playing out in the news?
        
         | rdl wrote:
         | Email migration? I haven't been following IBM very closely but
         | a quick google search failed me here.
        
           | NortySpock wrote:
           | https://www.theregister.com/2021/06/30/ibm_email_outage/
        
             | rdl wrote:
             | (Thanks; I was searching under the CEO's name and not IBM
             | for some dumb reason; I blame lack of coffee.)
             | 
             | Whoa.
        
             | echelon wrote:
             | That this could happen in any organization is surprising.
             | That it happened in IBM is downright shocking.
             | 
             | How do you fail an email migration and not have email for
             | your employees? How do you let this affect billing and
             | invoices?
             | 
             | Why haven't they at least set up something temporary?
        
               | reaperducer wrote:
               | _Why haven 't they at least set up something temporary?_
               | 
               | Yes, just spin up e-mail addresses for 400,000 people in
               | 177 countries. No problem. Just run it on a Raspberry Pi
               | in the basement.
        
               | echelon wrote:
               | Pay Google or Microsoft to do it for you.
               | 
               | Focus on the core business competencies, of which email
               | is clearly not one.
               | 
               | Edit since I can't reply: An extended email outage isn't
               | a good look either. If IBM can't run their own critical
               | systems, why trust them with yours? I personally think
               | making the strategic decision to outsource demonstrates
               | the ability and desire to find timely solutions.
        
               | sjm-lbm wrote:
               | I suspect that IBM would see both of those as
               | competitors, which honestly makes it more embarrassing.
               | They can't ask for help from people that know email at
               | this scale because they are too busy trying to tell the
               | F500 that they know cloud at this scale.
        
               | ivalm wrote:
               | Consulting on email migration does sound like it should
               | be a core competency for an enterprise tech consulting
               | company...
        
               | tyingq wrote:
               | Spinning up emails for just the sales people would
               | probably be worth whatever the short term cost was.
        
               | matt_s wrote:
               | This is on point.
               | 
               | If their main revenue is doing consulting for businesses
               | and their own IT projects have horrible failures why
               | would you pick them?
               | 
               | Its like hearing your plumber has leaking and broken
               | pipes in their house.
        
               | Bombthecat wrote:
               | But it's sadly fairly normal for tech consulting
               | companies. Worked at some, all it projects were horrible
               | and staffed from top to bottom and management barely
               | looked at it.
               | 
               | Why?
               | 
               | Because the money making was more important (getting
               | projects, sending seniors and principals off to projects
               | etc)
        
           | rPlayer6554 wrote:
           | https://www.theregister.com/2021/06/30/ibm_email_outage
           | 
           | TLDR: due to a bad email migration, IBM has had massive email
           | issues. Even the representative for the company had to give
           | the statement to the press over the phone.
        
           | [deleted]
        
         | MangoCoffee wrote:
         | probably not. IBM haven't been that much relevant in tech for
         | years. they pivot to the cut throat consulting services while
         | kind of abandoned what IBM used to be. a tech leader.
         | 
         | Microsoft was like IBM after Bill Gates. Not a tech leader for
         | many years until Microsoft pivot to Cloud computing and
         | software as services.
        
           | walrus01 wrote:
           | google "IBM phoenix payroll canada" for a fine example of
           | what has gone wrong.
           | 
           | https://www.google.com/search?client=firefox-b-1-d&q=ibm+pho.
           | ..
        
             | momothereal wrote:
             | By far the biggest software fuckup in Canada's history.
        
               | walrus01 wrote:
               | however, the therac-25 killed more people
        
               | momothereal wrote:
               | Not trying to downplay that one either, but Pheonix put
               | thousands of people in major financial risk and/or ruin,
               | and at least 1 suicide was attributed to it.
        
               | raverbashing wrote:
               | Nah, don't forget Target's SAP migration
        
               | datahead wrote:
               | One of my favorite lessons "learned the hard way" by
               | someone else. You fundamentally cannot run a business on
               | poor data practices. It will sink you before you realize
               | what happened.
               | 
               | https://www.canadianbusiness.com/the-last-days-of-target-
               | can...
        
             | markus_zhang wrote:
             | How did they get so wrong...
        
           | adventured wrote:
           | Microsoft was not like IBM after Bill Gates. Not remotely
           | close.
           | 
           | Microsoft was still overwhelmingly a product company in the
           | decade after Gates. It did not abandon its product-centric
           | focus and switch to a service-centric business model ala IBM.
           | IBM hasn't been a product heavy company in several decades at
           | this point. Microsoft never stopped being product heavy.
           | 
           | IBM liquidated its core product businesses, one after
           | another. Microsoft never did that.
           | 
           | Microsoft's sales increased dramatically during the Ballmer
           | years, going from $23b in 2000 to $77b in 2013. IBM's sales
           | haven't increased like that in decades (quite the opposite in
           | fact, they've had a stagnant or contracting business for a
           | long time).
           | 
           | The cloud boom that Microsoft is currently enjoying, was
           | planted during the Ballmer era, and it's being very
           | successfully harvested during the Nadella era.
           | 
           | Nadella is a superior CEO to Ballmer, and far superior at
           | product. However Ballmer did not wreck the ship nor switch
           | Microsoft to being primarily service focused in the model of
           | IBM. IBM by contrast is a wrecked ship.
        
             | rst wrote:
             | IBM in its heyday (1930s through the '70s) wasn't primarily
             | a service company either -- its core products were always
             | data processing equipment (computers, and the plugboard-
             | programmed punched card tabulators and other gear that
             | preceded them). It became largely a service company in a
             | pivot -- executed slowly over many years -- after losing
             | dominance in the DP equipment market.
        
             | geodel wrote:
             | Exactly right! Simplistic narrative of old leader that
             | could do no right and new leader that could do no wrong.
             | People do love these fairy tales.
        
           | sjg007 wrote:
           | All big tech has a consulting arm. It's how you get people to
           | use your software.
        
         | slater wrote:
         | He was actually let go months ago, but never received the
         | e-mail /s
        
           | awill wrote:
           | pure gold
        
           | twh270 wrote:
           | Six months from now you'll find him in the basement,
           | caressing his red Swingline stapler. :)
        
       | failwhaleshark wrote:
       | Agnostic of actual political nonsense, an email scandal finally
       | gets someone in leadership. That's the unluckiest SOB ever.
       | 
       | PS: After an experimental physics colloquia on their campus up
       | the hill, IBM Almaden offered me a _paid_ dark matter RA job when
       | I was _15_. It didn 't happen thanks to sabotaging parents. Also,
       | a computer scientist-programmer lady from IBM volunteered her
       | time at my high-school which was really cool.
        
       | 2OEH8eoCRo0 wrote:
       | I was considering applying to Red Hat and was assured by the fact
       | that IBM put Jim in charge. Now that I see this I'm reconsidering
       | Red Hat as a company.
        
         | pengaru wrote:
         | My connections at RedHat say nothing has changed for them, and
         | that RedHat is not IBM.
         | 
         | But Jim leaving does make it look less likely that IBM will be
         | turning into RedHat anytime soon.
         | 
         | From what I'm told RedHat continues operating as an independent
         | business unit under IBM.
         | 
         | Edit: full disclosure; I too am considering RedHat, as I'd like
         | to resume full-time work on systemd/journald in the future and
         | there aren't exactly many places employing people to work on
         | upstream systemd. So I may be biased in wanting to believe the
         | above is true, grain of salt and all.
        
           | decodebytes wrote:
           | I am at RH right now, engineering. Things have really not
           | changed. I will be honest I am a little nervous that Jim has
           | left, but I think on the whole it's still a great place to
           | work right now. In 3-5 years , who knows?
        
           | dobsonj wrote:
           | They do indeed feel like 2 completely different companies.
           | Different hiring processes, different employment contracts,
           | different cultures, different offices, different tools,
           | different management structures, different benefits. The
           | biggest change I've seen is that they now trade under the
           | same ticker symbol.
           | 
           | Source: former IBMer, current Red Hatter
        
       | mathattack wrote:
       | I wasn't a fan of Red Hat or the acquisition but it seems like
       | they are pretty much turning it into a (small) revenue stream to
       | be optimized rather than something transformational.
       | 
       | Am I the only one who feels like IBM could be circling the drain
       | like when they missed out on PCs?
        
       | tims33 wrote:
       | It won't be long until IBM starts the write-downs of the goodwill
       | from the RH acquisition.
        
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