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"Centennial Store" IBM Split: More and more shops walk more and more difficult

via:GeekPark极客公园     time:2020/10/13 1:21:05     readed:371

Some enterprises split like "cell division", which maximizes the benefits, profits and synergy effects after gene reproduction and reproduction, and the moat grows deeper and deeper; while some enterprises are more like breaking arms to survive, and the situation forces them to do nothing, IBM is obviously more like the latter. Eleven after the long holiday, IBM, a "century old shop" and "blue giant", announced that they would split the business.

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On October 8, U.S. time, according to a number of foreign media reports, IBM will split up the traditional technology services business, accelerate the transition to cloud computing, the future focus on the main channel of cloud and AI.

It is understood that IBM's business includes cloud and cognitive software business, global enterprise consulting service business, global information technology service business, system business and financing business. The traditional technology service business to be split is IBM's IT infrastructure service business, helping enterprise users maintain and upgrade their computing business, with annual revenue of about 19 billion US dollars. After the split, it will be listed separately and temporarily named Newco.

The rest of the business, cloud business, hardware, software and consulting services accounted for 75% of IBM's total revenue, and will continue to remain under IBM. The reason why IBM split up again is mainly because the traditional old business continues to shrink, which conceals the strong growth of new business including cloud, which has been a long-term drag on IBM's overall business revenue performance and disappointed the capital market.

IBM the new Indian CEO, Avind Krishna (Arvind Krishna), also bluntly, IBM's main purpose is to unleash IBM growth potential, Cloud and AI as growth engines. And this "milestone "," redefine yourself" split, To Krishna, "Everything is the courage and confidence that Red Riding Hood (Red Hat) gives IBM ."

IBM |Twitter of the new CEO of Indian origin, Awande Krishna (Arvind Krishna); and

Switzerland in the cloud is not easy to be

From the value of red hat, as an open source solution provider, red hat promotes the development of enterprise it with the help of open source technologies such as Linux and kubernetes (used to manage container applications on multiple hosts in cloud platform).

"Red Hat Linux is a Linux based operating system designed by red hat, which is widely used in cloud servers. Red hat advocates using open source technology to release the potential of hybrid cloud and multi cloud, that is, users can switch between different public cloud brands at any time. " Zhang Xiaorong of the Institute of deep science and technology told geek Park (ID: geekpark).

Furthermore, in today's era of traditional it migration to the cloud, red hat has the key technology of hybrid cloud and multi cloud, which is the bridge between public cloud and private cloud. For example, container and kubernetes technology are the "Darling" of hybrid cloud and multi cloud market. Red hat's container coordination platform openshift based on kubernetes integrates a series of management tools and security functions, which is a key platform affecting the productivity of enterprises.

All of these were completed under the leadership of IBM CEO Krishna, and the acquisition of red hat has become a key event in the development history of IBM.

At the beginning of this year, Krishna replaced Ginni rometty as IBM's new CEO. After taking office, Krishna made clear two major strategies for IBM in the future, namely, hybrid cloud and AI Artificial Intelligence. "Make red hat openshift the default choice for hybrid clouds."

At the same time, Krishna believes that there is a large space for the growth of cloud and AI. "IBM's journey into the cloud is only 20% - 25%, and the journey to AI is only 4%."

Through the hybrid cloud path, it is obvious that IBM wants to be the "Switzerland" in the cloud market, but is it as easy as Krishna described it?

IBM has completely lost its ticket to the public cloud market. Data from a number of third-party institutions show that the global public cloud market pattern is stable, showing a 3A trend. Amazon AWS, Microsoft azure and Alibaba cloud occupy more than half of the global share. At present, the dividend of public cloud is declining, and hybrid cloud and multi cloud will become the next wave of cloud market.

But the market of hybrid cloud and multi cloud is also fierce. In terms of operating system products, middleware, virtualization and cloud technology, red hat will compete with Microsoft, Oracle, VMware, pivot and other enterprises. "In virtualization tools, operating systems, middleware, service program and management combination products, many enterprises use Microsoft products." Zhang Xiaorong said.

In terms of the development map of hybrid cloud and multi cloud, the market scale of the United States and Europe is the largest, and IBM's main battlefield will focus on this. Many overseas analysts believe that even if IBM has red hat, it can not compete with mainstream cloud computing vendors such as Amazon AWS and Microsoft azure.

The years IBM missed

Looking back on the development of IBM for 109 years, it is not the first time to split up.

As Krishna said on the conference call, "IBM spun off its network business in the 1990s, its PC business in the 2000s, and its semiconductor business about five years ago, because these businesses do not conform to the value concept of IBM's business integration."

IBM has been keeping up with the pace of the times and has been inundated and crushed by the times, becoming the "outcast" in the innovation market.

In 2002, Amazon launched the AWS platform to provide tools and services for developers. In 2006, Amazon officially launched AWS through three simple service products. Microsoft azure and Google cloud also launched public cloud service products around 2010.

Although it is not too late for IBM to enter the cloud computing market, in 2007, IBM cooperated with Google to open cloud computing courses and launched "blue cloud" cloud computing business solutions. In 2013, we began to discuss the strategy of hybrid cloud and private cloud. But in fact, from the 2000's to the 2010's, IBM has been busy "slimming down" and "selling and selling". It has successively stripped off its low profit PC business and x86 server business and sold them to Lenovo. It has not invested a lot of resources and funds in cloud computing business.

"IBM did not seriously invest in the public cloud. Most of its resources are still in the technology and business service departments, and do some IT services around the cloud." IDC analyst Zhou Zhengang said.

In 2015, Amazon AWS, with the first mover advantage, made profits, and its growth exceeded market expectations. After more than ten years of cloud business acquisition, IBM realized the importance of cloud business. A year later, IBM officially announced the cloud transformation.

However, the transformation has achieved little. In addition to IBM's hardware manufacturer attributes and limited customer resources, IBM has made mistakes in its bet on cloud. For example, we didn't invest in the data center, publicized blockchain and AI Artificial Intelligence, and the route deviated. IBM's share of the cloud market did not rise but fell, becoming another category.

IBM missed the cloud computing era.

In 2011, IBM Watson AI (Watson) beat two human contestants on "the edge of danger" and announced that health care would become Watson's main application area. IBM entered AI earlier, but overestimated the potential of AI medical treatment, causing great controversy. The health care system is extremely complex, and Watson's machine learning mode does not match the way doctors work.

Watson system is extremely closed, there is no third-party system integrator, no software development kit. Like a "black box", one input and one output results. There is no benefit to IBM in terms of commercial returns. James kisner, an analyst at Jefferies, once said, "Watson will never be able to contribute significant revenue to IBM, and IBM will not be able to recover the cost of AI investment. In the AI programming talent competition, IBM lost to Amazon, Microsoft, Google and even hundreds of start-ups. "

IBM missed the third wave of AI.

Today, IBM is also on the way to cloud and open source, and the effect is still unknown. As Daryl plummer, director of cloud computing research at Gartner, puts it, "if IBM can be split into two, it will be a turning point for IBM's rebirth, similar to Microsoft. If it doesn't work, it will be a turning point in IBM's decline. "

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