2014: The Year the Cloud Killed the Datacenter

Cloud & Services IT Asset Management | 0 comments

by | November 13, 2014

Back in the summer of 2013 I wrote a series of articles on what I called the “Datacenter Zombie Apocalypse.”

The first was an observation of the troubles IBM was undergoing trying to shift its very datacenter-oriented services and outsourcing business to one that was more cloud focused and how it might serve as a bellwether for the IT industry as a whole.

The other was about how, as an IT practicioner, one might transition their skills to be more cloud-oriented.

Where are we now with all of this, over a year later?

IBM’s situation has gotten worse. While it continues to invest in Cloud, its services revenue is flat, and has been forced to divest two separate hardware businesses — its x86 server business to Lenovo and its silicon manufacturing capacity that powers their System p and System z enterprise systems to GlobalFoundries.

The company will almost certainly rebound, but at a cost. It intends to take a $4.7B charge against revenue in the 3rd quarter and almost certainly more layoffs are in store for the Armonk technology giant, which has over 400,000 employees globally.

SOURCE: zdnet.com


Submit a Comment

Subscribe To Our Newsletter

Subscribe To Our Newsletter

ITAM Channel brings the best news and views from the ITAM industry. Sign up for the newsletter and get them straight to your inbox

You have Successfully Subscribed!