back to article IBM: Revenues down, profits up in Q2

IBM's top brass must surely be glad that the acquisition of Sun Microsystems that was in the works since last November fell apart in the spring. Because the current configuration of Big Blue, with its emphasis on services and software and decreasing dependence on hardware, means it can continue to generate profit growth, even …

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  1. phila
    WTF?

    zSeries sales growth?!

    "Loughridge said that in growth markets (meaning not North America, Western Europe, or Japan), mainframe sales were actually up by 17 per cent when measured in local currencies" - so who bought a mainframe in Zimbabwe?!

  2. Anonymous Coward
    Anonymous Coward

    Mainframe Growth

    Maybe they replaced their own mainframes in Eastern Europe. Or leased one to South Africa

  3. Anonymous Coward
    Pirate

    who!?

    so who bought a mainframe in Zimbabwe?! - the secret police?

    Parts of Asia not covered by Japan, the Financial Time regulary reports on the lack of impact of the "credit crisis" in the far east. China is suffering because they are the new Birmingham (i.e Workshop of the world) the west isnt buing so sales are down, however its all relative, growth in china is still happening due to the intensive stimutlation package by their Government, and Japan also suffer due to drop in western markets, banking and the legacy of the last crash in the 90s

  4. Anonymous Coward
    Coat

    Wonderful

    "mainframe sales were actually up by 17 per cent when measured in local currencies"

    So 17 (or more) % inflation in these markets?

  5. Anonymous Coward
    WTF?

    You wonder why IBM follows the stock buyback Strategy?

    Well its because old Sam is paid in Stock and he committed to Wall Street to deliver huge increase in earnings per share which translates to higher stock price and even higher earnings for good old Sam.

    Bugger the employees. No salary increases, no bonuses and the threat of your job going offshore. That's how Sam is paying for the increases in his take home!

  6. Anonymous Coward
    Anonymous Coward

    ...and meanwhile IBM UK is alienating its workers

    So the profits are up, mainly due to cutting costs. IBM UK thinks this a great idea, their proposals to kill the final-salary plan for a big chunk of the workforce will really boost the profits and the executive share perks. The workers hit by this are the ones who stayed with the company and pulled it out of the ditch a few years back.

    Interesting to note that a lot of those workers are now joining the Unite union, even the most loyal employees eventually cotton-on to being shafted. Unions in IBM UK - how times have changed ! The trust is gone, and it isn't coming back.

    Several of the products that bring in so much cash for IBM are developed and serviced at Hursley, in the UK. By people who are now thoroughly pissed-off with the treachery exhibited in the recent pension proposals. By people who are looking to get out, or just thoroughly demotivated.

    But who cares, as long as the share price goes up and the execs get their bonuses.

  7. Anonymous Coward
    Unhappy

    Idiotic Bunch of Mastabators.

    Nice to see the guys at the top getting a pat on the back for this. When its the hard work of the people on the ground that achieved this. And then the people on the ground that get shafted by IBM layoffs pension cuts.

    Just great !

  8. Anonymous Coward
    WTF?

    @AC on IBM Hursley

    you couldn't be more wrong about the atmosphere in there. It's a good place to work and unlike many other companies there haven't been layoffs, and unlike what you seem to think, there were bonuses last year. There probably will be this year too.

    WTF - because some of the posters on here really haven't got a clue.

  9. Ascylto

    IBM = ID Cards

    IBM are dealers in UK ID Cards and State Databases.

    They will never get any of my (or my company's) money.

    P.S. Weren't IBM in league with the Nazis at one time?

  10. Anonymous Coward
    Thumb Down

    I can tell you how IBM is doing this

    No pay rises in the UK (for absolutely everyone is what we're told even the best of the best !) . Even, If you were employed last year as a graduate hire - so they are now being paid less than this years hires (go figure!). Oh, but they are increasing the pay if you're in a BRIC because we're lose "talent" (uh hum) big-time over there because we don't pay enough already.

    No travel - which is affecting communications.

    Very aggressive "performance initiatives" i.e. sack anyone who isn't an absolute top performer (sorry, IBM UK can't "sack" anyone , "perform them out") - including the stallwarts who made the products work for you for years and now know them inside out. Also, targetting the top leaders (because they get paid more already - go figure !) Note - not the execs - apparently they're all top performers (uh hum)!

    Killing the final salary pension scheme - "helping" older employees out of the door because it's not worth their while staying anymore.

    Oh, of course - graduate hires are cheaper than the people we're getting rid of - so that won't stop.

    Not buying new machines for your employees - yes, really! Don't buy new machines in a software company. So that we're reduced to asking employess if they have any old machines for the new hires we've just got in

    Yes, this is a great company - oh, but as long as the execs-to-employee pay margin is increasing we're all OK ! I think they live on a different planet ! A very "bankers" mentality.

  11. Anonymous Coward
    FAIL

    @AC on @AC on IBM Hursley

    YOU couldn't be more wrong - anyone that believes this drivel, search for AMIPP in BING/GOOGLE/YAHOO and check out some of the comments being made by loyal Hursley employees who cannot believe what's happening to this company.

    It was once a great place to work, and the layoffs have all been by stealth (to avoid paying redundancy) but bonuses will be a thing of the past if they can be made to contribute to better looking profitability - mark my words!

    The grounds are still very pleasant.

    You are right, however, at least one of the posters on here have not got a clue.

  12. Anonymous Coward
    Anonymous Coward

    re @AC on IBM Hursley

    Bonuses - I've tracked my bonuses over the years I've been here and they've basically stayed around the same (e.g. give or take 600 quid in the past four years) whether that be because I've been seen as a poorer perfomer in the good years or a good performer in the bad years.

    In my opinion, bonuses are a poor indicator in this company of how it's doing or how you're doing in it. There is very little an individual can do to change their performance related pay and generally people don't feel motivated by bonuses - they're seen as nice but if you can't affect them, what's the point. This is known by the management and various reshuffles of the format have been done over the years to try to affect it - but non have succeeded.

  13. Bazzerman

    Effect on Morale

    So the shareholders and analysts are happy. Meanwhile the employees who are being screwed into the ground to pay for the profits. How else do you squeeze costs out but by cutting down on numbers of employees and rigorous control of expense - pensions andthe like.

    What was once a happy ship is turning into a floating morgue.

  14. Adam 61
    Badgers

    IBM's (predominantly) German friends

    I think that the Nazi thing came from an IBM subsidiary in Germany during WW2 (De Ho Mags or something like that) that made all the record keeping machines they used to keep track of people. The Nazi's were meticulous record keepers. I read this in a book by Jeffrey Deaver so how much is true I'm not sure, I can't think it would be fictitious (unless IBM sold him a duff PC once!).

    Ironically (not sure if this is just an urban myth) but IBM won't sell into the gaming industry on moral grounds??

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