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Bob Cancilla on IBM i › IBM HW in the Tank for Q1

April 18th, 2014
Well folks, IBM has released its Q1 2014 results and revenue for IBM Hardware is down by 25% and to add injury to insult they had a $300 million loss!  IBM's CFO spoke to the HW debacle twice in the announcement of results for the quarter noting that IBM was extremely concerned about these results.

Then today I see this article about a $99 super computer on a wallet size card!

90 gflops computing power for $99.

The board comes with software built in like Linaro Ubunto with all the software of a standard Linux distribution.  Parallella was funded on kickstarter 

Folks, IBM has never been able to run an efficient manufacturing operation.  IBM made money on hardware when they could sell machines for over $1 Million that cost less than $10,000 to manufacture. The huge price tag on IBM HW paid for all of the horrendous overhead and inefficiency in the design and implementation of IBM HW and turned a nice profit.

Today this 90 gflop machine and others from other manufactures are pushing IBM into a competitive pricing situation, especially in the Power Systems arena where they cannot compete. 

I fully expect to see IBM sell off the manufacturing of POWER Systems and possibly zSeries too by the end of this year.  I think IBM will retain the patented technology and continue to operate their engineering labs but license the building and sales to a company that is more efficient like Lenovo or someone else.

I fully expect that if this happens that will be the end of IBM i and AIX.  i expect the machines to be sold with Linux.  

This is getting serious.  

See IBM's own articles on their Q1 2014 results!  Don't let your HW partner feed you any BS about IBM's loyalty to you the IBM i customer!  That is BS.  Ginny Rometti had better turn HW around, sell it off, or lose her job!  

IBM results:

http://www-03.ibm.com/press/us/en/pressrelease/43696.wss 
http://finance.yahoo.com/news/international-business-machines-management-discusses-033006480.html 
https://www.ibm.com/investor/events/ 


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