IBM: Transforming to What?
February 28, 2016
I read “Multi-Billion Dollar Question: Is IBM’s Transformation for Real?” The question is being asked by Fortune Magazine, an outfit which certainly has had a front row seat to its own transformation efforts.
The write up focuses on a Wall Street analyst who is not drinking the Big Blue fruit juice. Here’s the passage I highlighted:
IBM’s “core” revenues have declined by a stunning $29.7B, resulting in revenue declines (adjusted for currency and acquisitions and divestitures) in each of the last 4 years. Most sobering, IBM’s revenue growth rate on this normalized basis has not improved during the period.
This is news? I think not.
One of the initiatives which underscores IBM’s performance is the presentation of Watson. As you may know, Watson is a combination of:
- Lucene and other open source bits and pieces
- Home grown scripts
- Acquired technology
These “innovations” are presented as something new, innovative, and significant to businesses and consumers. Each time I read a puff piece like “IBM Watson Machine Learns the Art of Writing a Good Headline.” Text summarization and machine written news stories are not new.
IBM warrants some skepticism. What’s remarkable is that Fortune Magazine has seized on a single analyst’s observations? Good for the analyst. But the reality of IBM has been front and center for years.
Progress?
Stephen E Arnold, February 28, 2016
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