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IBM/Red Hat Trouble

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  • IBM CEO: The biggest challenge holding back our economy right now

    We're already beginning to see the contours of what our new post-pandemic digital economy will look like.

    Whether it is cloud-based platforms or AI-powered software, businesses across every industry are reshaping their future around the possibilities of these powerful and exciting technologies. In manufacturing, a factory floor operator now relies on AI-powered robots to detect defects in products that are invisible to the human eye. In health care, AI-powered virtual agents can now handle millions of calls at once. And, in telecommunications, cloud-based networks can now quickly adapt to massive shifts in traffic patterns — almost overnight.

    As the world continues to grapple with the effects of the global pandemic and the economic strain it has caused, technology must be part of the solution. Digital technologies such as hybrid cloud, artificial intelligence and eventually, quantum computing, can rewire our economy, unleash more productivity and spur business and societal growth. But to get there, there is one challenge we must overcome: We must take big and bold steps to increase access to digital skills training for workers — regardless of their background — so they can take advantage of this new era.

  • Whitehurst fallout: 'The future IBM we will probably never see'

    Technology columnist Timothy Prickett Morgan is harshly critical of Jim Whitehurst’s departure as president of IBM, writing: “Someone at the company forgot what being named president of the IBM Company means. Or no longer cared.”

    Morgan, the co-editor of tech site The Next Platform and who lives in Boone according to his LinkedIn site, declares that Whitehurst’s departure means what the longtime CEO of Raleigh-based Red Hat would have done to impact IBM is something “we will probably never see.”

    While not being harshly critical of Chair and CEO Arvind Krishna – who prevailed over Whitehurst when IBM’s board selected a CEO to replace the retired Ginni Rometty last year – Morgan makes clear that losing Whitehurst hurts Big Blue.

  • IBM insiders say CEO Arvind Krishna downplayed impact of email troubles, asked for a week to sort things out

    IBM CEO Arvind Krishna on Wednesday addressed the company's ongoing email woes in his monthly video message to employees.

    Krishna, we're told, said the email disruption only lost the company one deal worth about $10,000 and he said the situation would be fully fixed in a week.

    The chief exec's comments appear to address The Register's report last week that IBM's partial email outage might have an impact on company revenue. If the figure Krishna cited is correct, the email disruption's sales impact is immaterial in terms of the Big Blue's overall finances. The possibility of brand damage, however, remains.

    Our first source within IBM described how Krishna likened IBM employees to "shoemaker's kids," a reference to the proverb that shoemaker's children go barefoot and a suggestion that IBM is too busy tending to its customers to provide reliable email to its employees.

    "I took it as 'we are too busy doing other things,'" said the individual who told The Register about the video.

    Krishna, we're told, spent several minutes on the subject, claiming that IBM sent 4.2 billion emails a week and that IBM employees have been experiencing only about 30 minutes per day of downtime. Our source told us that's "just not true."

    On Tuesday, this individual said thousands of people have been affected and described 27,000 people in the company's Slack help channel posting requests for assistance.

  • Ex-IBM whistleblower's suit back in court, 8 years after he alleged irregularities in $265m IRS software deal

Why Whitehurst is stepping away from IBM

  • Why Whitehurst is stepping away from IBM

    It was never much of a mystery why James Whitehurst stepped down as IBM's President. Whitehurst wanted to be IBM's CEO, and IBM's board went for company man Arvind Krishna instead. Now, though, Whitehurst himself has admitted that that is indeed the reason.

    Krishna, who's only a few years older than Whitehurst, was named IBM's CEO in January 2020. Clearly, there was no easy route forward for Whitehurst. It was assumed, however, that Krishna would only be an interim CEO. That soon proved not to be the case.

    Why then did Whitehurst stick around as long as he did? Simple. He wanted to oversee the IBM-Red Hat merger until he felt it was as good as it was going to get. As Whitehurst said, "I feel really good about the Red Hat integration."

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