[BanffMoose]

[OT] Here's a post from Robert Cringely regarding IBM's upcoming layoffs. At the time I copied the article, there were well over 150 comments, much of it from ex-IBMers lamenting the demise of IBM. Add this to the other recent articles that said IBM only developed 10 iOS apps in the last year, using 3rd party developers...I'm not surprised IBM is suffering. I'm not really surprised that IBM's SP actually went up today, but when will their investors wake up? The emperor has no clothes.

I, Cringely IBM's reorg-from-Hell launches next week - I, Cringely

IBM�s big layoff-***-reorganization called Project Chrome kicks-off next week when 26 percent of IBM employees will get calls from their managers followed by thick envelopes on their doorsteps. By the end of February all 26 percent will be gone. I�m told this has been in the planning for months and I first heard about it back in November. This biggest reorganization in IBM history is going to be a nightmare for everyone and at first I expected it to be a failure for IBM management, too. But then I thought further and I think I�ve figured it out�

I don�t think IBM management actually cares. More on this later.

IBM really does not know how to do reorganizations, which are mostly political realignments. They come up with these ideas of how to group people. They make a big deal about it. Then for years the new organization figures out what it�s actually supposed to be doing, how it�s supposed to be done, and they spend a lot of time fixing problems caused by the reorganization.

Here are some examples of what I mean. In the USA, mainframe and storage talent will see deep cuts. This is a bit stupid and typical for IBM. They just announced the new Z13 mainframe and hope it will stimulate sales. Yet they will be cutting the very teams needed to help move customers from their old systems to the new Z13.

The storage cuts are likely to be short sighted too. Most cloud services use different storage technology than customers use in their data centers. This makes data replication and synchronization difficult. IBM�s cloud business needs to find a way to efficiently work well with storage systems found in customer data centers. Whacking the storage teams doesn�t help with this problem.

Meanwhile the new IBM security business has a tremendous number of open positions, are promising promotions and pay increases, etc. They are going after every security skill in the business. The collateral effect of this is most IBM services contracts will lose their security person and won�t be able to replace him/her. This will hurt a lot of contracts and put IBM in an even worse position with the customer. Creating this new business unit will be destructive to other business units and alienate existing customers. The size of the new security business is impressive. It will have to sign a lot of new business for it to break even and pay all those salaries. The giant assumption is there is that much business to be signed. In a year or two this business unit could be facing huge layoffs. This is the classic � shoot, ready, aim.

In one of the new business units I�ve heard that everyone is going to be interviewed and will have to give a sales pitch. If you can�t sell, you�re out. Clearly IBM�s declining revenue problem is tempering the organization of this unit. This team will fix the problem by getting rid of the people who can�t sell. This is the classic treat the symptom and ignore the cause way of thinking. There are reasons why customers are buying less from IBM. Working harder to sell won�t fix those problems. If anything it will probably increase IBM�s problems with its customers.

The new cloud business is particularly troubling. This business unit is based on the assumption that cloud is the universal solution, now tell me what you need. What if my application won�t work in the cloud? There are common things used in many business systems that do not exist in cloud services, anyone�s cloud services (Amazon, Microsoft, IBM, anyone!). New IBM organizations are being built to push cloud business whether it works in a given situation or not.

IBM has a sales culture. This reorganization was designed with a sales mindset. IBM has decided what it wants to sell. It assumes its customers will want to buy it. It completely ignores the fact there are other factors involved in running a successful company.

Now to why I think there�s a good chance none of this actually matters to IBM management. Investors and analysts alike have to stop believing everything they hear from IBM. Big Blue is a master at controlling the discussion. They state or announce something, treating it as fact whether it exists or not. They build a story around it. IBM uses this approach to control competitors, to manage customer expectations, and to conduct business on IBM�s terms.

So while IBM is supposedly transforming, they are also losing business and customers every quarter. What are they actually doing to fix this? Nothing. In saying the company is in a transition and is going to go through the biggest reorganization in its history, will this really fix a very obvious customer relationship problem? No, it won�t.

Transformation at IBM appears to me to be a smoke screen to protect management that doesn�t actually know what it is doing.

Here�s a similar view from one IBMer that came in just this morning. Notice how he/she refers to IBM in the third person:

�the only thing IBM is doing is playing its balance sheet� to show good profits and play with the amount of shares in the market� ergo manipulate EPS (earnings per share)

If you look at this you realize we have already lost the battle

IBM spent 2.5 times the amount of money on EPS manipulation than on CAPEX and overall it spends less than half of what competitors are spending on R&D

Where IBM competitors show double digit growth, IBM shows revenue decline�.. so, IBM is outgunned and outsmarted� simple as that

So, only two scenarios� IBM is serious about a turn around and will try to find a new equilibrium and thereafter growth path� this means revenue will continue to decline as it changes the revenue mix before it can grow� or management does not care (or has no clue)� and will try to maximize bonus and get the hell out.

[leafs123]

OT: Techcrunch reporting 12000 now.

Turns out the first person that reported the news online added an extra zero to the number of layoffs lol.

http://techcrunch.com/2015/01/26/sou...8TechCrunch%29

[Shanerredflag]

OT: Techcrunch reporting 12000 now.

Turns out the first person that reported the news online added an extra zero to the number of layoffs lol.

http://techcrunch.com/2015/01/26/sou...8TechCrunch%29

Thanks for this...lets hope this one is closer to reality. Would hate for that many folks to lose their employment.

Classically Posted.

[masterful]

Thanks for this...lets hope this one is closer to reality. Would hate for that many folks to lose their employment.

Classically Posted.

I don't think that is true. The whole article is were saying that this is the largest in history. And why would they go on news for a 0.5% of their work force

#BBFactCheck

[Shanerredflag]

I don't think that is true. The whole article is were saying that this is the largest in history. And why would they go on news for a 0.5% of their work force

#BBFactCheck

True enough.

Classically Posted.

[BACK-2-BLACK]

Since we are in OT mode:

Huawei appears set to open office in Kitchener-Waterloo

"China�s Huawei Technologies Co. Ltd., one of the world�s largest telecommunications equipment companies, is opening up an office in BlackBerry Ltd.�s hometown of Kitchener-Waterloo � and hiring former employees of the struggling Canadian tech firm to help it beef up on mobile security.

Huawei, which is based in Shenzhen and sells everything from mobile phones and tablets to routers and cellular antennas, is looking to hire engineers in Kitchener, Ont., the heart of Ontario�s technology-hub."


Looks like all the players are trying to make a move on the "security" aspect of the tech business in order to play in the IoT game.....?

[Shanerredflag]

Love these fact checks...http://blogs.blackberry.com/2015/01/...inkId=11961074


Classically Posted.

[world traveler and former ceo]

Since we are in OT mode:

Huawei appears set to open office in Kitchener-Waterloo

"China�s Huawei Technologies Co. Ltd., one of the world�s largest telecommunications equipment companies, is opening up an office in BlackBerry Ltd.�s hometown of Kitchener-Waterloo � and hiring former employees of the struggling Canadian tech firm to help it beef up on mobile security.

Huawei, which is based in Shenzhen and sells everything from mobile phones and tablets to routers and cellular antennas, is looking to hire engineers in Kitchener, Ont., the heart of Ontario�s technology-hub."


Looks like all the players are trying to make a move on the "security" aspect of the tech business in order to play in the IoT game.....?

The area, anchored by the University of Waterloo, is also noted as the "Siliicon Valley of Canada" ... over 40 percent of Canadian tech startups originate in this area or in association with the University of Waterloo as i understood ... for the same reason companies in US flock to California's ....

Blackberry is the largest tech company there but there are many others also ... including Google ...

[BlackistheBerry]

Samsung to be main chip supplier for next iPhone: Report

SEOUL: South Korea's Samsung Electronics will be the main supplier of processors powering Apple's next iPhone, Maeil Business Newspaper has reported, citing unidentified sources in the semiconductor industry.

Samsung will be responsible for around 75% of the chip production for the next iPhone, the South Korean newspaper said.

The newspaper did not say how much the contract is worth and what other company will be supplying Apple. Samsung will make the chips from its factory in Austin, Texas, according to the report.

A Samsung spokeswoman said the company does not comment on market speculation. Apple could not be immediately reached for comment.


Source- http://m.timesofindia.com/tech/tech-...w/46019265.cms

[_dimi_]

Hi Morgan!!!


Could you please give us an idea on what impact a stronger dollar will have on earnings? I don't think we can ignore the decline we've seen of the euro, sterling, canadian dollar vs. us dollar? Many thanks

[Superfly_FR]

Yup, makes my calculations and opportunities way more tricky to set sometimes...

Posted via CB10

[W Hoa]

Foxconn to shrink work force as sales growth stalls

Growth in smartphone sales will halve this year from 26 per cent in 2014, according to researcher IDC, while PC sales will contract by 3 per cent.

Similarly, the average smartphone will sell for 19 per cent less in 2018 than last year’s $297.

Apple supplier Foxconn to shrink work force as sales growth stalls - The Globe and Mail

[W Hoa]

Why Apps for Messaging Are Trending (No mention of BBM)

Asia has been a particularly fertile breeding ground for expanding the uses of the apps. In 2013, for example, WeChat joined Xiaomi, the Chinese smartphone giant, to offer a limited quantity of the company�s newest phone for purchase on the chat app. Users could reserve and then buy the new smartphone entirely inside the WeChat app using Tenpay, the payments service owned by Tencent. Xiaomi said it sold 150,000 phones in less than 10 minutes.

The WeChat app is also one of the biggest hubs for Chinese consumers to find new mobile games. Last quarter, Tencent�s mobile games revenue alone was 2.6 billion renminbi, or about $420 million.

Ted Livingston, the chief executive of the messaging app Kik, based in Canada, has argued that younger users are coming of age in a world where their portal to the Internet has been the smartphone, and they are more willing to try new forms of commerce and discovery.

�We view this as being a race to be the WeChat of the West,� Mr. Livingston, whose app is predominantly popular with young North American audiences, said in November. �For us, it�s a once-in-humanity great opportunity.�

http://www.nytimes.com/2015/01/26/te...ttom-well&_r=0

[kfh227]

Posted via CB10

[Corbu]

Hi Morgan!!!


Could you please give us an idea on what impact a stronger dollar will have on earnings? I don't think we can ignore the decline we've seen of the euro, sterling, canadian dollar vs. us dollar? Many thanks

Interesting question.

This is what we know from MSFT, last night:

Microsoft Chief Financial Officer Amy Hood told industry analysts late Tuesday that the strong dollar will dent quarterly revenue by 4 percent.

Ahead of the Bell: Microsoft down premarket on weak outlook - Businessweek

[_dimi_]

UK Regulator Sets Out Priorities For Growing The Internet Of Things | TechCrunch

[ZayDub]

http://finance.yahoo.com/news/linux-...211301384.html

Competition?

Tour 9630 > Bold 9650 > Q10 > Classic or Passport???

[jake simmons3]

http://finance.yahoo.com/news/linux-...211301384.html

Competition?

Tour 9630 > Bold 9650 > Q10 > Classic or Passport???

"Linux is set to become the leader in the automative infotainment operating system market." I havn't seen a more uneducated statement in awhile

[DaSchwantz]

So our resident guru sees that all the trading last week has given us a some support above $10/shr. I think that the volume is low while the shorts find some new analysts to FUD up some doom an gloom. If we don't see a flood of FUD by Wednesday then the price should hold over 10 (judging by the intermediate term history of this stock). the shorts are really going to have to up their game to drive this down below ten. Hopefully Morgan is right and we'll rally up into a new channel where the shorts and continue their silly games.

FUD is focusing on week of opex.


Posted via CB10

[BACK-2-BLACK]

http://finance.yahoo.com/news/linux-...211301384.html

Competition?

Tour 9630 > Bold 9650 > Q10 > Classic or Passport???

"The most attractive feature of Linux OS is its open-source nature, which means that automakers can customize features according to their needs


Wouldn't open source be something you stay away from in car applications? or applications that require secure connections???

Isn't the car QNX system fully customizable for Automakers? That is one of the features they like as it distinguishes them from other makers ???

[Corbu]

Four Months in, the BlackBerry Passport Keeps Garnering Great Reviews and Press | Inside BlackBerry

[Superfly_FR]

Funny as ideas can match sometimes.
We have to add some keywords in our media monitoring ...
The cloth burns between google and CyanogenMod (the Android alternative).

BlackBerry + CyanogenMod + Amazon + Samsung ?
Oh, boy, I dream out loud sometimes ...

Ref: French article, google translated, sorry
https://translate.google.com/transla...-text=&act=url

[_dimi_]

Security Is a Must for the Internet of Things | Re/code

[Superfly_FR]

Four Months in, the BlackBerry Passport Keeps Garnering Great Reviews and Press | Inside BlackBerry

Wow, I really like the rounded corners of the ATT's ...

[ZayDub]

Picked up some shares this morning! Thank u to the shortie at $10.34 lol

Tour 9630 > Bold 9650 > Q10 > Classic or Passport???