re: Rometty's Past Reveals IBM's Future
The idea sounds great, but I don't buy it. IBM is entirely driven, from strategy to daily operations on high-margin, low-risk markets. That's why they gave up on PCs and that's why they invest so much on research and IPs.
Consulting, on the other hand, is a high-risk business, with medium, but unsteady margins - it's no cash cow. Besides, it's based on creating value for the client, who stays with it. All of this makes it go against all the culture, strategy and operations of IBM. I worked for PwC, and I was on the bunch that was bought by IBM. One by one, I saw the people with business consulting skills leave after getting tired of fighting a losing battle against culture, policies and rules that were designed to keep IBM on the low-risk, high-margin that's not consulting.
I wish Rometty all the luck, I've got lots of friends there yet. But the tip of the spear got blunt, and the consulting muscle is weak in there now. And I don't see IBM's investors interested in changing the way IBM pays them for their money. Mostly, I don't see IBM giving up the short-term profitability to change into a consulting company.
The ERP/Apps market, I can buy that. But that's not business consulting, that's software implementation. And it's about time IBM got there, instead of seeing its partners get bought by the competition.