The bigger they are, the harder they fall

No, this isn’t about Kim Dotcom.

Over the decades I’ve observed that very few tech companies are able to sustain their dominance.  In the past, who could have imagined the disappearance of Wang and NCR?   HP is but a shell of it former self.

Yet IBM and Microsoft seemed invulnerable.

As we have seen, Microsoft is slowly being whittled away by Google, and IBM… well, they’re facing one of the worst times in their history.

More than 110,000 jobs could disappear worldwide in a major restructuring at the once-dominant computing goliath – nicknamed ‘Big Blue’.

The jobs will be cut as IBM undergoes a massive restructuring in a ‘desperate’ attempt to revamp its business, according to a report on the US Forbes website.

But IBM poured cold water on the article, calling the reported scale of the job cuts ‘ridiculous’ and ‘baseless’.

The website said the company was preparing to merge its three main arms – hardware, software and support – into a single operating business. It will break down the ‘Chinese walls’ between the divisions and reorganise staff into teams based on their jobs, such as sales or research.

This is because of the growing demand from businesses to use companies such as IBM as a ‘one-stop shop’ for technology needs. It is expected to restructure its entire global workforce – some 430,000 people – under a programme known as Project Chrome.

IBM has struggled to shift from its traditional strength of making computers to offering IT services and information storage.

IBM already faced this in the early 90s when selling of their PC business to Lenovo, and getting back to their original knitting of large systems for large companies.   But that too is on the way out as client driven cloud computing removes the need for big iron and drives the need for cloud warehouses.

IBM are wanting to join Google and Amazon in the cloud storage business.

The company set aside  800 million for redundancies last week, which it described as ‘workforce rebalancing’, after three-month sales figures came in 900 million lower than expected.

If it axes one in four staff, as reported, it will be the largest corporate layoff in history. The previous largest redundancy programme was also from IBM, when it cut 60,000 staff in 1993.

Robert Cringley, from Forbes, said: ‘To fix its business problems and speed up its “transformation,” next week about 26 per cent of IBM’s employees will be getting phone calls from their managers.

I’m sure New Zealand won’t be exempt.  Certain government projects, especially those that were “renegotiated” after already drifting targets, costs and objectives will be at increased of further problems as key IBM stall will be made redundant.


– Mail Online

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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

To read Cam’s previous articles click on his name in blue.