Re:IBM is splitting itself into two public companies
by bob33212 on Thursday October 08, 2020 @04:03PM
(#24723255)
Large companies allocate some percentage of their budget to "modernization" or "IT improvements" IBM tries to grab as much of that budget as possible and then to spend a little money as possible internally delivering results. So they end up selling "Watson AI" or implement a "24/7 Cyber Security Operation Center". They don't give a shit how useful or long term successful those products or services are. They only care about how big the contract is and how high their margins are on the contracts.
[ Parent
| on HN ]
Re:IBM is splitting itself into two public companies
by echelon on Thursday October 08, 2020 @04:24PM
(#24723517)
Why is IBM's stock soaring? This is the sign of a dead company barely walking.
Furthermore, IBM has been in this state since the 90s, right? How are they still lumbering around? Why do companies fall for their sales pitch?
Re:IBM is splitting itself into two public companies
by bob33212 on Thursday October 08, 2020 @04:34PM
(#24723636)
IBM stock is performing terribly compared to other technology companies from 15 years ago GOOG,AMZN,APPL.
They deliver a good story to other inefficient companies. Those companies can tell their board that the "new Watson AI will optimize their operations in Q4"
Re:IBM is splitting itself into two public companies
by plorkyeran on Thursday October 08, 2020 @05:15PM
(#24724023)
IBM's stock is down 30% since 2013 and is only up 10% from its post-dotcom crash 2000 number. They pay decent dividends so it's been an okay place to park some money, but it's the opposite of soaring.
Re:IBM is splitting itself into two public companies
by cyberdrunk on Friday October 09, 2020 @03:56AM
(#24727799)
There is a ton of inefficiencies in big businesses and governments and IBM and other service companies are preying on that. It's a viable business model, if a little scummy.