IBM

It does not compute

Red Radio reports on yet another IT shambles costing the country.

What is it with local body and government contracts?  Why are so many such monumental foul-ups that only benefit the consultants brought in to advise on them? The colour of the government seems to be irrelevant as it is the bureaucrats that decide to embark on these projects, the consultants get involved and the politicians believe the spin and sign off the budget proposals. Quote. Read more »

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.

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Novopay? Chickenfeed compared to Qld Health project

This week’s Queensland Health billion dollar payroll system bungle makes NovoPay fiasco seem trivial:

IBM has found to have acted unethically during a bid to win work developing a new payroll application for the Australian state of Queensland’s Department of Health, but has not been held directly or solely responsible for the $AUD1bn blowout in costs on the project.

IBM’s been under the microscope for its role in this project because it started life in 2007 as a $6m job. That became $27m and has now reached over a billion dollars, because the application is a dud: staff have been overpaid, underpaid, forced to repay money and sometimes not paid at all. With the health sector having a colossal and unionised workforce, those stories and the blowouts became political dynamite.  Read more »