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Businesses Cloud IBM The Almighty Buck

Ex-Employee Divulges Shortfalls In IBM's Cloud Business 45

Posted by timothy
from the chance-of-meatballs dept.
CowboyRobot writes "IBM's cloud computing revenues are smaller and less 'cloud-intensive' than customers and Wall Street analysts might think. That's the claim of a former IBM employee who backed up more than a few of his/her critical assessments of the vendor's cloud prowess with a number of confidential internal documents shared with InformationWeek. The documents put IBM's 2012 cloud-related revenue at $2.26 billion, a figure the company has declined to disclose publicly. In 2011, IBM did issue a roadmap that set forth the goal of reaching $7 billion in annual cloud revenue by 2015, so the much lower figure raises doubts about whether the company is on track. Noteworthy is data that shows that roughly half of current IBM cloud revenues are tied to hardware, in many cases systems used to run customers' private clouds or partner clouds."
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Ex-Employee Divulges Shortfalls In IBM's Cloud Business

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  • by xxxJonBoyxxx (565205) on Thursday August 15, 2013 @05:09PM (#44577625)

    >> roughly half of current IBM cloud revenues are tied to hardware, in many cases systems used to run customers' private clouds or partner clouds.

    Does this really surprise anyone here? Isn't that the whole point behind "private cloud" to get top management derps to check the "cloud" box without actually changing how the existing datacenter and applications are run?

    • by Nyder (754090) on Thursday August 15, 2013 @05:22PM (#44577743) Journal

      >> roughly half of current IBM cloud revenues are tied to hardware, in many cases systems used to run customers' private clouds or partner clouds.

      Does this really surprise anyone here? Isn't that the whole point behind "private cloud" to get top management derps to check the "cloud" box without actually changing how the existing datacenter and applications are run?

      I miss the day when clouds were called servers...

      • by hutsell (1228828)

        I miss the day when clouds were called servers...

        I also miss the day when the client-server architecture was considered better than the dumb terminal-mainframe model, a variation of that model now being being marketed as the cloud.

    • No, it shouldn't surprise the geeks.

      For geeks, "the cloud" simply means remote computers. The "cloud" referencing the icon for the Internet that has been in use since the early 1970s in network diagrams.

      For non-geeks, "the cloud" is a mystical source of infinite storage and infinite computing power, harnessed by the magic of the Interwebs.

      • by Zak3056 (69287)

        For geeks, "the cloud" simply means remote computers. The "cloud" referencing the icon for the Internet that has been in use since the early 1970s in network diagrams.

        For non-geeks, "the cloud" is a mystical source of infinite storage and infinite computing power, harnessed by the magic of the Interwebs.

        You've just described the relationship between a residential electrical customer and the electrical utility (the end user doesn't see the turbines, he just knows that the magic wall outlet makes his TV work). Which, all things being equal, is a pretty good comparison, given that "the cloud" is really just a reversion to the old time sharing model of computing. We geeks supply the GeeBees and the WiFis, and the rest of the world plays Angry Birds, secure in the knowledge that they are technologically savvy

  • by Anonymous Coward

    Didn't take long for the second quarter rash of layoffs to produce some fallout. I suspect there will be more former IBMers coming out with internal docs.

  • "He / she's a whistleblower! Can we burn him / her?"

    • by Anonymous Coward
      Please explain how this is "whistleblowing". Was IBM doing something illegal? Were they cooking their books? However, this guys walks out with confidential material and gives them to the paper. That sounds more like the action of a disgruntled worker. If I was his coworker I would be worried about sharing with him, because I don't think I could trust him.
  • In 2011, IBM did issue a roadmap that set forth the goal of reaching $7 billion in annual cloud revenue by 2015

    Is it possible that since 2011 when the cloud hype was at its peak, IBM like the rest of the world has realized that "the cloud" has some serious drawbacks and companies all over the world are pulling their assets out as fast as they can? Ironically today our entire Sales org was down for 2hrs because of some network hiccup 300 miles away from us cut off access to our "Cloud" based sales app. Per the vendor this was not an outage of course. The service was still up we just couldn't connect to it.

  • There is no IBM (Score:4, Insightful)

    by rsilvergun (571051) on Thursday August 15, 2013 @06:11PM (#44578275)
    there's a bunch of sales reps and H1-B contractors gathered round an old name nobody remembers....
  • This guy may be ex-IBM, but IBM's lawyers are gonna sue this guy into oblivion...

    That's no moon... that's Armonk...

  • is hot air.

  • by lophophore (4087) on Thursday August 15, 2013 @07:04PM (#44578787) Homepage

    IBM bought SoftLayer, one of the larger Cloud Computing providers in the US. That will contribute to their revenue quite a bit.

    The employee who disclosed confidential documents better lawyer up, IBM is known for hiring the sharpest-toothed lawyers money can buy.

  • smaller and less 'cloud-intensive'

    I am cloud-intensive, you insensitive clod!

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