From time to time I read Robert X. Cringely’s column, and though I mostly do not agree with him, I find what he say interesting. In his latest column about his predictions for 2008, I found this interesting and since I work for IBM and Global Services, it is a bit worrying.
6) IBM will have several quarters of bad earnings, will try to sell Global Services to private equity firms who don’t really want it, then end up financing the transaction itself to save Sam Palmisano’s job.
Global Services (GS) in IBM is made up of Global Technology Services (GTS) and Global Business Services (GBS). Now I have to wonder whether Mr Cringely is talking about the whole of GS or only GTS or GBS in particular. As far as I know, over the past couple of quarters and years, GTS was the best performing division in IBM and in general outperformed all other divisions. So I have to wonder why Mr Cringely makes a prediction like this? He does not say on what he based his predictions, so to me it just looks like stabs in the dark.
As we all know, services is a growing trend in the IT industry and more and more companies turn to some form of outsourcing of their non-core business. This is what GS does and I cannot see that IBM would ever get rid off it. IBM is acquiring companies everyday that supports their Services business. What will IBM do with this companies if and when they get rid of GS .. this just do not make sense.